Brookfield Snaps Up $855M Portfolio

By Gail Kalinoski

A 45-asset portfolio of industrial and office properties in 12 states has changed hands for $854.5 million, according to TA Realty LLC, which made the sale on behalf of The Realty Associates Fund IX LP.

L.A. Industrial Property Sold by TA Realty in Large Portfolio Deal

TA Realty, a Boston-based provider of real estate investment management services to industrial and private investors, said that Brookfield-managed real estate funds purchased the assets. The portfolio comprises a mix of high-quality industrial and office properties totaling 8.6 million square feet. TA Really said most of the properties are leased to investment-grade tenants and are located in high barrier-to-entry markets, including Los Angeles, Dallas, Chicago and Washington, D.C., metro areas. A list of the assets was not released, however the Washington Business Journal reported three of the properties were Arlington Square, a 145,000-square-foot building in Arlington, Va., that was the former U.S. Fish & Wildlife Services’ headquarters; Prince Street Plaza, 52,800 square feet, Arlington; and Montrose Metro One, nearly 120,000 square feet, Rockville, Md.

“With this sale, we have successfully monetized a significant number of assets in Fund IX, including all of the remaining industrial assets,” Tom Landry, managing partner at TA Realty, said in a prepared statement. “We believe the outcome of this transaction represents an attractive risk-adjusted return on invested capital, and we look forward to distributing the proceeds to our investors.”

Fund IX is part of TA Realty’s flagship fund series that focuses on creating diversified real estate portfolios that generate strong cash flow, benefit from intensive asset management and result in long-term value creation. It is a commingled fund with $1.49 billion in equity capital and has commitments from a diverse group of institutional investors.

“We are actively pursuing additional individual and pooled transactions for the remaining Fund IX assets and have received strong interest from a number of well-capitalized parties,” Landry added.

The TA Realty team members involved in transaction include Partners Nicole Dutra Grinnell, Michael Haggerty, Jim Raisides and Disposition Officer Luke Marchand. JLL represented TA Realty in transaction negotiations.

The portfolio sale comes several months after TA Realty sold industrial and office assets in Austin, Texas and San Francisco. The November dispositions included four Class A distribution buildings in Austin totaling 1.02 million square feet known as the Tech Ridge Portfolio, which were sold to Stockbridge Capital Group LLC for $107 million. TA Realty also sold a 128,000-square-foot office building at 115 Sansome St. in San Francisco to Vanbarton Group for $83 million.