ANNAPOLIS, MD, January 8, 2020 – Realterm and J.P. Morgan Asset Management are pleased to announce the acquisition of a 1.75 million-square-foot (msf), highly functional high flow-through (HFT) logistics portfolio located in 28 US core industrial markets, including Chicago, Atlanta, Dallas, New Jersey, New York, and Philadelphia, among others. Each of the 54 assets in the portfolio benefit from transportation advantaged locations with excellent access to key interstate highways, airports, and seaports.
The portfolio was acquired by Realterm Logistics Income Fund (RLIF) in a 50/50 JV with institutional investors advised by J.P. Morgan Asset Management, and will be managed by Realterm.
"The acquisition of this portfolio was a rare opportunity to acquire a premier collection of final mile, cross-docked and transloaded properties strategically located throughout the United States," said Stephen Panos, Senior Vice President and Fund Manager with Realterm. "We're excited to add these high-quality assets to Realterm Logistics Income Fund's portfolio, as they offer excellent functionality to a wide variety of our customers seeking efficient facilities for final mile and transload operations."
"The opportunity to acquire a large portfolio of highly functional HFT assets that support modern logistics uses and e-commerce growth on a national level is rare," said Derek Fish, Vice President of Investments. "The properties are geographically diversified across key markets with access to both major freight lanes and important consumption markets."
"Logistics portfolios of this scale scarcely come to market and this acquisition allows us to further increase our exposure to high growth logistics trends, as well as enhance our existing holdings with Realterm in the truck terminal space," said Mike Kelly, Head of Real Estate Americas at J.P. Morgan Asset Management. "We have witnessed increasing investor demand for these types of industrial assets, and we expect the portfolio's extensive geographical footprint, strong historical occupancy and robust returns will generate strong performance on behalf of our clients."
Highlights of the portfolio include:
- 1,754,750 total square feet
- 54 properties
- 28 core industrial markets
- 717 total acres
- 2,090 total number of doors
Avison Young represented the seller and facilitated the transaction.
Realterm is a real estate operator with a 30-year track record of executing niche private equity strategies at the intersection of the global supply chain and evolving consumption trends. Realterm currently manages over $5 billion in assets through five logistics-oriented private equity fund series: Realterm Airport Logistics Properties (RALP), an open-end fund investing into high flow through (HFT) on-airport logistics real estate throughout North America; Realterm Logistics Income Fund (RLIF), an open-end, core-plus fund, and the Realterm Logistics Fund (RLF) series, a closed-end, value-added fund series, both of which invest into HFT surface transportation logistics real estate throughout the U.S.; Realterm Europe Logistics Fund (RELF), a closed-end, value-added fund series investing into HFT logistics real estate throughout Europe; and IndoSpace Logistics Parks (ILP), a closed-end, opportunistic fund series investing into warehouse and logistics real estate throughout the top industrial markets in India.
About J.P. Morgan Global Alternatives
J.P. Morgan Global Alternatives is the alternative investment arm of J.P. Morgan Asset Management. With more than 50 years as an alternatives investment manager, $150 billion in assets under management and more than 600 professionals (as of September 30, 2020), we offer strategies across the alternative investment spectrum including real estate, private equity and credit, infrastructure, transportation, liquid alternatives, and hedge funds. Operating from offices throughout the Americas, Europe and Asia Pacific, our 14 independent alternative investment engines combine specialist knowledge and singular focus with the global reach, vast resources and powerful infrastructure of J.P. Morgan to help meet each client's specific objectives. For more information: jpmorganassetmanagement.com.