Equus Capital Buys Industrial Portfolio for $168M

2350 Park Center Drive, Mebane, N.C. Image courtesy of Equus Capital Partners

Equus Capital Partners is continuing to expand its industrial footprint across the U.S. with the acquisition of eight properties in the Greensboro, N.C., area and two in the Memphis, Tenn., market.

Tim Feron, vice president of acquisitions for Equus Capital, told Commercial Property Executive that the company acquired the portfolio from Ares for $168 million. Equus Capital made the acquisition on behalf of its sponsored value-added fund, the Equus Investment Partnership XII LP.

The 10-property portfolio totals more than 1.7 million square feet, with buildings that range from 55,000 to 372,000 square feet. According to Equus Capital, the portfolio is mostly made up of single-tenant bulk distribution industrial properties and is more than 92 percent leased to a roster of high-profile credit tenants including Ford Motor Co., Carrier Global, Ferguson Enterprises and Lab Corp.

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According to Equus Capital, the portfolio has an opportunity to increase net operating income and expand lease duration. The company also noted that there are three buildings within the portfolio that have expansion capabilities. Feron told CPE that the new ownership will conduct cosmetic upgrades and could possibly expand one of the properties, located at 2350 Park Center Drive in Mebane, N.C., in the near future.

Further focus on Greensboro

George Haines, partner & senior vice president of acquisitions and development, said in prepared remarks that the Greensboro industrial market will continue to be a focus for the company due to the strong population growth that the state is seeing. Haines also said in his prepared statement that Equus Capital expects the Memphis market to improve as the U.S. supply chain evolves.

Currently, Equus Capital owns and operates a portfolio of more than 30 million square feet of industrial space across the U.S. Earlier this month, the company added 75 industrial assets located in seven high-growth East Coast and Sun Belt markets to its growing portfolio. Equus Capital also has the land for another 12 million square feet of new industrial developments.