Investcorp Buys 4.5M SF Industrial Portfolio Across 7 Metros

Investcorp has acquired its largest U.S. warehouse portfolio to date — 4.5M SF comprising 56 industrial properties across seven metros with the bulk of the buildings in Dallas and Chicago.

Investcorp, a global manager of alternative investment products for institutional and high net worth individuals, said it paid about $300M for the portfolio, which “reflects our commitment to growing Investcorp’s footprint in the U.S., which is a key driver of the firm's overall growth strategy and an area in which we will look to continue expanding as opportunities arise,” Investcorp Executive Chairman Mohammed Alardhi said in a press release.

The transaction provides Investcorp with a 90% leased portfolio of Class-A and B warehouses, light manufacturing and flex buildings, across the e-commerce, manufacturing, design, wholesaling and food services industries, the company said.

The portfolio was purchased as a single investment. More than 60% of the properties are in tier one industrial markets:

• Dallas: 16 multi-tenant Class-B industrial warehouse/flex buildings.
• Houston: Two multi-tenant Class-B industrial warehouse buildings.
• San Antonio: One multi-tenant Class-B industrial warehouse building.
• Minneapolis: Nine multi-tenant Class-A and B warehouses.
• Chicago: 14 single and multi-tenant Class-B industrial warehouse/manufacturing buildings.
• Philadelphia/Delaware: Nine multi-tenant Class-A and B industrial warehouse and flex buildings.
• Phoenix: Five multi-tenant Class-A and B industrial warehouse/manufacturing buildings.

“This investment will help our clients gain and increase exposure to the highly relevant industrial sector in a diversified manner and benefit from some of the secular trends shaping the retailing industry in the U.S.," Investcorp co-CEO Rishi Kapoor said. “The properties in this portfolio are located in supply constrained infill areas offering ‘last mile’ proximity to major population centers." 

Investcorp targets existing office, retail, industrial, multifamily and hospitality properties in the country's largest 30 metropolitan areas, with a focus on mid-market core and core-plus investment opportunities.

This recent acquisition is Investcorp's ninth industrial portfolio, all of which were acquired over the past 36 months. It now owns 14M SF of U.S. industrial assets.

Investcorp's New York-based real estate team handled the transaction. The team is an active investor in U.S. commercial and residential real estate equity and high-yield debt. As a whole, Investcorp employs approximately 390 people across its offices in Bahrain, New York, London, Abu Dhabi, Riyadh, Doha and Singapore.