On behalf of its U.S. core real estate strategy, PGIM Real Estate has acquired a 30-property industrial portfolio totaling 5.4 million square feet in partnership with Perlmutter Investment Company’s IAC Properties. PGIM Real Estate acquired the portfolio valued at approximately $700 million by recapitalizing an interest in the existing joint venture structure. 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).
Located across Los Angeles, the Greater Chicago area, Seattle, Dallas-Fort Worth, and Louisville, Kentucky, the portfolio is 97% leased and offers users access to key national and regional distribution hubs with robust infrastructure and favorable demographics trends.
“Fundamentals in each of the markets across this portfolio were exceptionally strong heading into 2020,” said Cathy Marcus, global chief operating officer and head of U.S. equity for PGIM Real Estate. “Despite the near-term impacts of COVID-19, we’re seeing continued growth in the U.S. industrial sector and particularly in these high barrier-to-entry locations. We expect that this portfolio will outperform the national forecast over the long term.”
PGIM Real Estate owns more than 107 million square feet of industrial space globally and more than 45 million square feet in the U.S. In the third quarter of 2020, the firm has added 49 best-in-class industrial properties totaling 12.3 million square feet to its U.S. core real estate fund specifically, further strengthening its asset allocation position. Most recently, PGIM Real Estate announced the $425 million acquisition of a 15-building industrial portfolio located across eight properties in Atlanta, Dallas, Denver, Fort Worth, and Phoenix on behalf of its core fund.
“We were an early investor in the U.S. industrial market and the COVID-19 crisis has accelerated many of the e-commerce-driven trends that were already in place and that initially made us bullish on the sector,” said Frank Garcia, managing director and senior portfolio manager for PGIM Real Estate’s U.S. core strategy. “Through this acquisition and other large transactions this quarter, we’ve been able to very efficiently deploy capital into the market and have strengthened our commitment to the sector as a result.”
Todd Goldberg, managing director, 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.