Creation, J.P. Morgan Form $1B Industrial JV

Midway Commerce Center in Chandler, Ariz. Image courtesy of Creation RE and J.P. Morgan Global Alternatives

Creation RE, a Phoenix-based real estate investment and development firm, and J.P. Morgan Global Alternatives are investing $1 billion in industrial, warehouse and logistics projects across four states in a newly formed joint venture.

The joint venture partners have closed on three of seven planned projects totaling 5 million square feet in Newark, N.J.; Melville, N.Y.; Islandia, N.Y.; Fort Worth, Texas; Chandler, Ariz.; Gilbert, Ariz., and Phoenix.

Two projects are scheduled to break ground in the second quarter. The largest of the first three is Fort West Commerce Center, a three-building, 532,535-square-foot industrial development in Fort Worth. Midway Commerce Center in Chandler will also have three buildings with a total of 301,994 square feet. The groundbreaking for the third project, McClellan One, has not been set but it will consist of one 119,084-square-foot building in Newark.

Details on the four remaining projects that will be capitalized and developed by the joint venture were not disclosed by the partners. But they are expected to be Park Algodon North and South in Phoenix, Baylis 495 Business Park in Melville, Lindsay 202 in Gilbert and Old Nichols Commerce Center in Islandia, according to Creation’s website.

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Josh Zemon, managing principal of Creation, said in a prepared statement the joint venture had assembled an extremely high-quality portfolio of projects together across the U.S. in a very short period of time. He called J.P. Morgan Global Alternatives, the alternative investment arm of J.P. Morgan Asset Management, an outstanding investment partner and said the Creation team was excited to continue growing with J.P. Morgan.

Alex Bez, vice president, real estate Americas at J.P. Morgan Asset Management, said in prepared remarks Creation has a demonstrated track record of sourcing and executing on differentiated industrial assets in markets around the U.S. He added investing in the right markets with top-tier developers like Creation has been and will continue to be a key part of the firm’s growth.

In February, J.P. Morgan Global Alternatives and Zenith IOS formed a $700 million joint venture creating a national industrial outdoor storage platform in urban infill locations in major metros and high-growth areas across the U.S.

Late last year, institutional investors advised by J.P. Morgan Global Alternatives acquired Pecos Logistics Park, a newly built, 1.2 million-square-foot Class A industrial development in Denver from Westfield Co. for more than $300 million.

Creation projects

Founded in 2018 by David Sellers and Bob Agahi, Creation has offices in Phoenix and Dallas, with a third planned for New York City early next year. Nationally, Creation has more than $3.8 billion in active projects spanning across California, Colorado, Arizona, Texas, New Jersey and New York.

Last month, a joint venture between Creation and Crow Holdings Capital broke ground on Mesquite 635, a three-building, 555,790-square-foot industrial project planned for more than 38 acres in Mesquite, Texas.

In addition to its logistics pipeline, the firm is also developing several large-scale, mixed-use projects. In February, a joint venture of Creation, Crescent Communities and FCP announced Heritage Park, mixed-use development in Gilbert that will feature a 154,000-square-foot five-story office building, a 288-unit multifamily community, 36,000 square feet of retail space and a 100-key hotel.