PGIM Real Estate acquires 30-property US industrial portfolio
PGIM Real Estate has acquired a 30-property industrial portfolio in partnership with Perlmutter Investment Company’s IAC Properties.
MADISON, N.J., Aug. 26, 2020 – On behalf of its U.S. core real estate strategy, PGIM Real Estate has acquired a 4.7 million-square-foot, 15-building industrial portfolio located across eight properties in Atlanta, Dallas, Denver, Fort Worth, and Phoenix, for a total value of $425 million. PGIM Real Estate is the real estate investment and financing business of PGIM, the $1.4 trillion global investment management businesses of Prudential Financial, Inc. (NYSE: PRU).
The 15 assets are newly constructed or still under construction and were designed with the flexibility and functionality needed to meet the demand of modern industrial tenants. The properties are situated in key U.S. distribution markets with access to critical infrastructure, including major thoroughfares and gateway airports. Each property offers proximity to densely populated, high growth locations with above-average resident incomes.
“The COVID-19 pandemic has not only supported the continued rise of e-commerce and distribution demand across the U.S., but it has significantly accelerated the existing trend,” said Cathy Marcus, global chief operating officer and head of U.S. equity for PGIM Real Estate. “As many more retailers and international corporations enter the U.S. industrial market or expand their presence in the sector, these state-of-the-art properties will be an attractive component of our broader industrial portfolio. They will benefit from long-term market growth and have the functionality needed to support the next generation of users.”
With 32- to 36-foot clear heights and functional layouts with ample dock doors, the properties are well positioned to accommodate the drastic rise of e-commerce and last mile distribution in the U.S., while offering space for advanced distribution operations and autonomous machinery. Tenant demand at the buildings has been exceptionally strong throughout the COVID-19 pandemic, with four of the delivered buildings now fully leased and two others partially leased.
“This transaction enabled us to capitalize on an extremely rare opportunity to acquire a large high-quality industrial portfolio that would have otherwise taken years to build or assemble,” said Frank Garcia, managing director and senior portfolio manager for PGIM Real Estate’s U.S. core strategy. “This quarter, we’ve added 49 best-in-class industrial properties totaling 12.3 million square feet to our core fund, located across highly sought-after U.S. distribution markets. These strategic acquisitions have further strengthened our asset allocation position and will result in stable income on our investors’ behalf.”
Steven Oliveira, executive director, and Kevin Interlicchio and Laura Nugent, associate vice presidents, of PGIM Real Estate’s Transactions team led the portfolio acquisition on the firm’s behalf.
About PGIM Real Estate
As one of the largest real estate managers in the world with $182.0 billion in gross assets under management and administration,1 PGIM Real Estate strives to deliver exceptional outcomes for investors and borrowers through a range of real estate equity and debt solutions across the risk-return spectrum. PGIM Real Estate is a business of PGIM, the $1.4 trillion global asset management business of Prudential Financial, Inc. (NYSE: PRU).
PGIM Real Estate’s rigorous risk management, seamless execution, and extensive industry insights are backed by a 50-year legacy of investing in commercial real estate, a 140-year history of real estate financing,2 and the deep local expertise of professionals in 32 cities globally. Through its investment, financing, asset management, and talent management approach, PGIM Real Estate engages in practices that ignite positive environmental and social impact, while pursuing activities that strengthen communities around the world. For more information visit pgimrealestate.com.
PGIM, the global asset management business of Prudential Financial, Inc. (NYSE: PRU), ranks among the top 10 largest asset managers in the world3 with more than $1.4 trillion in assets under management as of June 30, 2020. With offices in 16 countries, PGIM’s businesses offer a range of investment solutions for retail and institutional investors around the world across a broad range of asset classes, including public fixed income, private fixed income, fundamental equity, quantitative equity, real estate and alternatives. For more information about PGIM, visit pgim.com.
Prudential Financial, Inc. (PFI) of the United States is not affiliated in any manner with Prudential plc, incorporated in the United Kingdom or with Prudential Assurance Company, a subsidiary of M&G plc, incorporated in the United Kingdom. For more information please visit news.prudential.com.
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1 As of June 30, 2020, net AUM is $120.4 billion and AUA is $39.3 billion
2 Includes legacy lending through PGIM’s parent company, PFI.
3 Pensions & Investments Top Money Managers list, June 1, 2020; based on Prudential Financial, Inc. (PFI) total worldwide assets under management as of March 31, 2020.
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PGIM is the primary asset management business of Prudential Financial, Inc. (PFI). PGIM Real Estate is PGIM’s real estate investment advisory business and operates through PGIM, Inc., a registered investment advisor. Registration as a registered investment adviser does not imply a certain level or skill or training. Prudential, Pramerica, PGIM, their respective logos as well as the Rock symbol are service marks of PFI and its related entities, registered in many jurisdictions worldwide. Prudential Financial, Inc. of the United States is not affiliated in any manner with Prudential plc, incorporated in the United Kingdom or with Prudential Assurance Company, a subsidiary of M&G plc, incorporated in the United Kingdom.