KKR announced this week that it had acquired 1.6m square feet of industrial distribution space for approximately $136m.
The four industrial distribution properties are spread across the greater Atlanta metropolitan area and were purchased from four separate sellers.
The newly announced series of acquisitions comes hot on the heels of the acquisition last week by KKR of another industrial distribution property in Phoenix for $32m.
The Atlanta properties include three last mile distribution properties with an average age of 14 years, and a large, state-of-the-art fulfilment centre completed in 2020.
The Phoenix property was acquired from Cohen Asset Management and is a Class A property located in Phoenix’s Southwest Valley. According to KKR, the facility is 100% leased to a high-quality tenant for approximately five and a half years.
Speaking following the Phoenix acquisitions, Roger Morales, KKR Partner and Head of Commercial Real Estate Acquisitions in the Americas said that he believed that the continued acceleration of e-commerce would drive demand for state-of-the-art distribution centres.
Commenting on the Atlanta acquisitions, Ben Brudney, a Director at KKR overseeing the firm’s industrial real estate efforts said, “We are excited to increase our footprint in Atlanta, given the markets’ strong supply-demand fundamentals and long-term growth trajectory. These are important acquisitions for us as we continue to develop and diversify our industrial footprint to include both infill and multi-tenant assets, as well as larger, single tenant fulfilment centres.”
The three smaller Atlanta properties and the Phoenix property were bought by KKR through its Real Estate Partners Americas Fund II.
The fourth property in Atlanta is an investment by KKR’s core plus real estate strategy and the first industrial investment by the core plus fund in the Georgia capital.
Across its funds, KKR owns over 18m square feet of industrial property across the U.S.
Since launching a dedicated real estate platform in 2011, KKR has grown real estate AUM to approximately $14bn across the U.S., Europe and Asia.