Longpoint, Brookfield Recapitalize $700M Logistics Portfolio
A collection of 31 assets in supply-constrained markets across the U.S. was included in the transaction.
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Longpoint Realty Partners has revealed the closing of a partnership with Brookfield‘s Real Estate Secondaries business. The newly formed joint venture recapitalized a $700 million, 3.8 million-square-foot industrial portfolio held in one of Longpoint’s closed-end funds.
Longpoint will retain an interest in the portfolio and handle the day-to-day operations. Eastdil Secured worked on behalf of Longpoint in the deal.
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The national collection consists of 31 logistics properties in infill locations with limited supply across high-growth markets, such as Boston, South Florida, Dallas, New Jersey and Washington, D.C. The assets are roughly 97 percent leased to a diversified roster of more than 200 tenants.
Demographic shifts, technological advances and supply chain disruptions have created substantial long-term value creation opportunities for well-positioned properties, according to prepared remarks from Marcus Day, managing director at Brookfield Real Estate Secondaries. He added that the company has noticed an increased demand for secondary capital solutions that offer GPs and LPs additional flexibility to execute longer term business plans. The recapitalization with Longpoint is an example of the win-win nature of GP-led secondaries, for both LPs and GPs, Day concluded.
At the end of November, Longpoint Realty Partners completed the final closing of Longpoint Realty Fund II LP. The fund closed oversubscribed at around $669 million, past its original cap of $600 million and exceeded its initial target of $450 million.
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