Investcorp Pays $335M for Industrial Portfolios
These collections include assets in two major markets.
Investcorp continues to expand its industrial investments across the U.S. with the acquisition of two portfolios in Minneapolis and Baltimore. The global alternative investment firm spent more than $335 million on the asset collections totaling 27 properties and 2.7 million square feet.
The Minneapolis portfolio has 17 buildings and spans nearly 1.9 million square feet, while the Baltimore acquisition includes 10 buildings totaling 881,000 square feet. The locations and square footage of each asset in the two portfolios were not released and the company declined to offer more details, including the seller or sellers of the assets.
The company described the properties in general terms noting they have highly diversified tenants, high average clear heights, ample loading docks and parking spaces, as well as proximity to major thoroughfares, employment centers and residential neighborhoods.
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The firm, which has been among the top five largest cross-border buyers of U.S. real estate over the past five years, focuses on key U.S. industrial markets with significant population bases, diversified economies and resilient tenant demand.
Investcorp noted that as of the fourth quarter of 2024, market rent growth over the past three years averaged 13.4 percent in Baltimore and 11.4 percent in Minneapolis, according to Green Street Advisors data. These figures outpace the 9.3 percent average for the top 50 U.S. metropolitan areas.
Baltimore has seen a recent influx of major corporations including Optum Inc., JLL, Under Armour and Morgan Stanley. Minneapolis has a diverse economy that features 17 Fortune 500 companies like Target Corp., Best Buy Co., 3M Co. and General Mills.
In the U.S., the Bahrain-based firm invests primarily in the industrial and residential asset classes, with 98 percent of its portfolio coming from those two sectors. As of September, nearly 60 percent of Investcorp’s real estate assets under management in the U.S. were in the industrial sector. Since 1996, Investcorp has acquired approximately 1,400 properties totaling more than $26 billion.
Growing U.S. industrial presence
The Minneapolis and Baltimore deals come about five months after Investcorp made three industrial acquisitions totaling about 1.5 million square feet for approximately $300 million. The Dallas and Atlanta infill portfolio had 16 buildings totaling 597,161 square feet of space and expanded the firm’s existing significant industrial presence in both markets. Investcorp acquired the West Coast infill portfolio, which has 17 buildings encompassing 539,909 square feet of space across Denver, Las Vegas, San Diego and the San Francisco Bay Area. The Tampa industrial portfolio had eight buildings comprising 279,887 square feet of space.
Investcorp officials noted well-located, multi-tenanted assets continue to attract interest from tenants and investors as re-shoring and nearshoring efforts reshape the industrial and manufacturing landscapes in the U.S. The three portfolios reflected those characteristics and were expected to provide a resilient cash flow with year-over-year industrial rent growth.
Last April, Investcorp acquired a 1.3 million-square-foot, 31-building industrial portfolio in South Florida and Denver for about $200 million.
A month earlier, Investcorp formed a new investment vehicle valued at $526 million with two leading sovereign wealth funds to focus on acquiring U.S. industrial assets. The investment vehicle’s buying capacity was estimated at about $1.5 billion.
Several properties in Indiana and Florida previously owned by Investcorp changed hands last year. In July, Sperry Equities acquired Northwest Indiana Logistics Portfolio with 639,829 square feet across two buildings in Portage, Ind. Investcorp had owned the assets, which are in the Chicago industrial market, according to CommercialEdge data.
Cypress Park, a five-building industrial park in Orlando, Fla., with 256,838 square feet, was sold to Harbert Management Corp. in April for $40.5 million. The industrial park had been acquired by Investcorp in 2021 for $28 million, according to Commercial Edge.
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