Colony Industrial Buys $1B Portfolio

LogistiCenter at 167

Colony Industrial has just expanded its holdings by 11.9 million square feet in one fell swoop. The company, which is the industrial platform of global investment management firm Colony Capital Inc., acquired a 54-building national portfolio from Dermody Properties in a nearly $1.2 billion transaction.

“This acquisition was very strategic for our business, because while there are always a lot of small to medium-sized acquisition opportunities available for us to pursue, we rarely see a large, national light industrial portfolio of this size and quality,” Lew Friedland, managing director at Colony Capital Inc. & head of Colony Industrial, told Commercial Property Executive.

Lew Friedland, Managing Director at Colony Capital & Head of Colony Industrial

Colony Industrial’s newly acquired collection of premier buildings is located in seven states—California, Illinois, Kentucky, Nevada, Oregon, Pennsylvania and Washington—and spans 10 markets, including metropolitan Seattle, home to LogistiCenter at 167, a 226,000-square-foot warehouse/distribution center in Fife, Wash. The group of properties encompasses 48 last-mile light industrial buildings purchased via Colony Industrial’s light industrial platform, and six bulk industrial facilities acquired through a new joint venture with an institutional investor. The portfolio, which has an average age of four years, is 71 percent leased and increases Colony Industrial’s square footage by 25 percent.

CBRE National Partners represented Dermody in the transaction.

Locking in on light industrial

With the acquisition from Dermody, Colony Industrial’s presence in the coveted light industrial subsector increases by 7.7 million square feet across nine markets. The transaction marks the company’s second move this year in a bid to grow its light industrial footprint. In a joint venture with developer Huntington Industrial Partners, Colony Industrial completed the acquisition of 21 acres of land in Dallas for the development of two light industrial buildings totaling 355,000 square feet.

Images courtesy of Colony Industrial