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KKR doubles down on industrial with $835M acquisition
Investment firm acquired 9.7M sf of industrial properties
KKR is ramping up its bet on industrial real estate.
The investment firm closed on the acquisition of 9.7 million square feet of industrial properties in seven markets for about $835 million, according to a release.
In total, there are about 100 properties in Atlanta; Baltimore, MD; Chicago; Central and South Florida; Central Pennsylvania; and Dallas.
KKR will acquire the portfolio from High Street Logistics Properties, bringing the firm’s total industrial portfolio to about 30 million square feet. Rumors of the sale were initially reported earlier this month.
CBRE National Partners represented High Street in the transaction.
KKR made the investment through its Real Estate Partners Americas Fund II. Since launching a real estate platform in 2011, the firm has increased its real estate assets under management to $14 billion.
Institutional investors have been pouring money into industrial real estate as demand for e-commerce has been ramping up due to the pandemic. Earlier this month, Stockbridge Capital Group and a partner announced a warehouse deal valued at about $2 billion, marking one of the biggest commercial transactions this year.
Industrial property values are up about 8 percent from before the pandemic, compared to a 8 percent drop for all real estate property types, according to a research firm Green Street.