Investcorp Acquires $640M Industrial Portfolio

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In a $640 million transaction, Investcorp has acquired a portfolio of 64 industrial properties in seven major U.S. metro areas and totaling about 5.6 million square feet, the company announced Tuesday.

The acquisition brings Investcorp’s U.S. industrial real estate holdings to about $3.5 billion, with about 32 million square feet across more than 425 buildings.

The seller was not disclosed.

This portfolio consists of Class B-plus/B warehouses that are 95 percent leased overall. The properties are primarily in seven of the nation’s top industrial metro areas by size, as ranked by CBRE Econometric Advisors in the third quarter of 2021: Chicago (ranked first), Dallas (second), New York (fourth), Atlanta (fifth), Houston (sixth), Philadelphia (ninth) and St. Louis (20th).

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The properties reportedly all “have exposure to dense population centers with robust transportation infrastructure, proximity to interstate highways and large, diverse economies.”

According to a prepared statement by Michael Moriarty, principal/commercial acquisitions at Investcorp, the company is optimistic about the macroeconomic factors that are driving industrial growth in the U.S. Investcorp’s latest acquisitions reflect the expectation that outsized rent growth will continue and that the industrial fundamentals in each market will remain strong.

Investcorp spokespeople were unable to provide additional information requested by Commercial Property Executive.

Supply races demand

Industrial property deliveries across North America, having lagged demand by a significant margin in 2021, are expected to total 932 million square feet through 2023, slightly exceeding anticipated demand, according to an outlook report from Cushman & Wakefield.

Overall vacancy is nonetheless expected to remain low, reaching 4.1 percent by the end of 2023, just 30 basis points above the end of 2021—though still well under the 2012–21 average of 5.8 percent, also according to Cushman & Wakefield.