KKR in talks for massive warehouse buy

Demand for industrial space is booming as online orders climb

National /
Dec.December 03, 2020 01:30 PM
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
U.S. retail spending slows but still higher than last year
U.S. retail spending slows but still higher than last year
U.S. retail spending slows but still higher than last year
Mayor Bud Scholl and EverWest CEO Rick Stone with 1101 East 33rd Street, Hialeah (City of Sunny Isles Beach, EverWest)
Sunny Isles mayor sells Hialeah warehouse for $13M
Sunny Isles mayor sells Hialeah warehouse for $13M
8150 NW 64th Street and Longpoint Realty Managing and Founding Partner Dwight Angelini (Credit: Google Maps)
Longpoint Realty picks up warehouse near MIA
Longpoint Realty picks up warehouse near MIA
South Florida Logistics Center
JPMorgan buys Amazon-leased warehouse next to Miami International Airport
JPMorgan buys Amazon-leased warehouse next to Miami International Airport
14900 Northwest 22nd Court with Jonathan De La Rosa and Ben Silver
Opa-Locka warehouse near Amazon distribution center sells amid rising demand
Opa-Locka warehouse near Amazon distribution center sells amid rising demand
AEW Capital Management's Jeff Furber and 7200 Northwest 25th Street (Credit: Google Maps)
Cofe Properties sells warehouse portfolio near MIA for $25M
Cofe Properties sells warehouse portfolio near MIA for $25M
(Credit: Pixabay)
UPS extending keyless entry at apartment buildings to 10 more cities
UPS extending keyless entry at apartment buildings to 10 more cities
(Credit: iStock)
Report: Availability of U.S. warehouse space last year was the lowest since 2000
Report: Availability of U.S. warehouse space last year was the lowest since 2000
arrow_forward_ios

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

Loading...