Northwood Investors Pays $160M for Sun Belt Logistics Assets

Northwood Investors has acquired a collection of industrial assets totaling 1.8 million square feet across Georgia, Florida and Texas for $160 million.

JLL Capital Markets represented the seller of the fully leased Sun Belt Logistics Distribution Portfolio. The brokerage firm also secured the acquisition financing from Apollo affiliates.

The portfolio comprises three industrial buildings in premier distribution submarkets across three dynamic growth cities: Home Depot Cedar Port Distribution Center in Baytown, Texas; Havertys Distribution Center in Braselton, Ga.; and 10000 NW 15th Terrace in Miami, Fla.

Senior Managing Director Britton Burdette told Commercial Property Executive: “Over the past few years, we’ve seen an increased focus from investors to high-growth markets like those in the Sun Belt. This portfolio exemplifies this demand.”

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Burdette added that each property is a mission-critical component of its tenant’s supply chain, with occupancy histories spanning two decades for the Atlanta and Houston centers.

Long-term investment potential

Such fundamentals, combined with the region’s economic vitality and robust infrastructure, present a compelling case for long-term investment potential.

The portfolio has a seven-year weighted average lease term with a significant, embedded mark to market, as the in-place rents are approximately 40 percent below market rents.

Burdette and Capital Markets Industrial Co-Leader Trent Agnew and Managing Director Luis Castillo led the JLL Investment Sales and Advisory team. Senior Director Bobby Norwood led the JLL Debt Advisory team that secured the financing.

Burdette’s team earlier this month brokered a deal for Transwestern Investment Group, which acquired Interstate West’s Building C, an almost 1.2 million-square-foot industrial facility in Ellabell, Ga., a Savannah submarket. VanTrust Real Estate was the seller.

Northwood invests alongside institutional and private clients in a broad range of real estate and real estate-related investment opportunities across the U.S. and Europe. It began the year with approximately $8 billion of assets under management.