Jan. 14, 2021 -- Chicago, IL –Avison Young announced that it has negotiated the sale of a 1.75 million-square-foot (msf) logistics portfolio with properties in core markets across the United States. The portfolio was owned by CenterPoint Properties and includes 53 assets in key industrial markets, including Chicago, Atlanta, Dallas, New Jersey, New York, and Philadelphia, among others.
Avison Young Principals Erik Foster and Mike Wilson, head of the firm’s Industrial Capital Markets Group, represented CenterPoint Properties, based in Oak Brook, IL, in the sale to institutional investors advised by J.P. Morgan Asset Management.
“This portfolio is an integral part of the logistics infrastructure that supports e-commerce growth on a national level,” comments Foster. “This expansive portfolio allows the new owner to supplement its existing industrial investment platform and further position its funds for strong long-term growth.”
The portfolio has a strong geographic diversification, with many properties located in growing population centers with access to the nation’s top rail, port and airport distribution hubs. Most properties are single-tenant properties, leased to top tier logistics tenants, including FedEx, UPS, YRC Inc., Amazon, XPO Logistics and SAIA Motor Freight Line. Approximately 60 percent of the portfolio’s square footage is in the Northeast (New York, New Jersey, Philadelphia and other cities), with the Midwest having nearly 20 percent of properties (Chicago, Milwaukee, South Bend, Indianapolis, Columbus, Cleveland and others).
Investor Demand Strong
Heading into 2021, investor demand is strong in the industrial sector, prompting investors to look to many niche segments for assets. “Due to limited supply and end-user ownership, these types of logistics properties are highly fragmented and underinvested in by institutional players,” comments Foster. “These facilities offer excellent fundamentals and allow investors the opportunity to optimize the e-commerce supply chain, which is currently outpacing the rest of the economy."
The portfolio sale also demonstrates the strength of the industrial sector when compared with other asset classes. “Industrial has become the hottest asset class for investors, prompting many to expand their criteria beyond traditional warehouse and distribution facilities into niche segments, such as cold storage and, more recently, transportation oriented assets,” comments Foster.
“There is a strong focus on industrial right now, due to its stability and growth potential. The industrial sector is also seeing an influx of investors that are expanding beyond multifamily, office and retail, as those sectors have suffered during the pandemic,” comments Foster. “This increased competition is also driving pricing and availability of assets.”
Avison Young is the world’s fastest-growing commercial real estate services firm. Headquartered in Toronto, Canada, Avison Young is a collaborative, global firm owned and operated by its Principals. Founded in 1978, with legacies dating back more than 200 years, the company comprises thousands of real estate professionals in more than 100 offices around the world. The firm’s experts provide value-added, client-centric investment sales, leasing, advisory, management and financing services to clients across the office, retail, industrial, multi-family and hospitality sectors.
Avison Young is a 2020 winner of Canada's Best Managed Companies Platinum Club designation, having retained its Best Managed designation for nine consecutive years.
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.