KKR in talks for massive warehouse buy

Demand for industrial space is booming as online orders climb

National /
Dec.December 03, 2020 10:34 AM
KKR co-founders Henry Kravis And George Roberts (Getty; iStock)

KKR co-founders Henry Kravis And George Roberts (Getty; iStock)

Investment firm KKR & Co. is in talks to buy a portfolio of warehouses valued at more than $800 million, as a surge in e-commerce is driving investor interest in industrial space.

The deal includes about 100 properties in markets like Atlanta, Baltimore, Dallas and Chicago, according to Bloomberg.

Barclays is organizing financing in the form of $700 million in commercial mortgage-backed securities, Bloomberg reported, citing a source with knowledge of the matter.

Barclays and New York–based KKR both declined to comment.

Interest in warehouses has surged in recent months as investors look to capitalize on an e-commerce sector that has been propelled by the pandemic.

On Wednesday, Stockbridge Capital Group and a partner announced a warehouse deal valued at about $2 billion, according to the Wall Street Journal, marking one of the biggest commercial transactions this year.

KKR’s Roger Morales said in July that the company was taking a bigger bet on logistics.

“We believe that the current environment will lead to continued acceleration of e-commerce penetration, which drives demand for large modern distribution centers like the ones we are acquiring,” he said.

He added: “Logistics real estate represents a growth opportunity as more and more U.S. consumers migrate to shopping online.” [Bloomberg] — Sylvia Varnham O’Regan


Related Articles

arrow_forward_ios
Crow Holdings's Clark Machemer with 1 Market Street in Elmwood Park, New Jersey and Prologis' Hamid Moghadam with 600 Grumman Road West in Bethpage, Long Island (Marcal Paper, Crow Holdings, Prologis, Google Maps)
$100M warehouses planned in New Jersey, Long Island
$100M warehouses planned in New Jersey, Long Island
Gopuff co-CEO Rafael Ilishayev (Gopuff, iStock)
Gopuff scaling back warehouse footprint amid rapid-delivery slowdown
Gopuff scaling back warehouse footprint amid rapid-delivery slowdown
Amazon CEO Andy Jassy (Getty Images, iStock)
Amazon to scrap industrial properties in warehouse strategy flip
Amazon to scrap industrial properties in warehouse strategy flip
Amazon ceo Andy Jassy and former ceo Jeff Bezos (Getty Images, iStock, Illustration by Kevin Cifuentes for The Real Deal)
Amazon binge ends in hangover, halt on warehouse deals amid $4B loss
Amazon binge ends in hangover, halt on warehouse deals amid $4B loss
(iStock/Illustration by Kevin Rebong for The Real Deal)
Modernization in major metros is priority for industrial: Newmark
Modernization in major metros is priority for industrial: Newmark
Jeff Bezos and the first Amazon Bookstore at 4601 26th Avenue NE, Seattle (Getty, iStock)
Amazon to close book on 68 brick-and-mortar stores
Amazon to close book on 68 brick-and-mortar stores
7 Bushwick Place with GFP Real Estate' Jeffrey and Eric Gural (GFPRE)
Gural family puts up East Williamsburg warehouse up for $30M
Gural family puts up East Williamsburg warehouse up for $30M
(iStock)
Industrial spec development up, delivery down
Industrial spec development up, delivery down
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...