Equus Capital Partners, Ltd. (“Equus”), one of the nation’s leading real estate investment managers, has acquired a 75 property, 5.4 million square foot industrial portfolio located across seven high growth, major distribution markets through the Sun Belt and East Coast. The portfolio is predominantly comprised of multi-tenant in-fill shallow bay properties located in established transportation corridors and population centers. The portfolio is 98% leased to nearly 250 tenants offering a diversified rent roll and balanced lease maturity schedule. The portfolio locations are some of the most dynamic growth markets in the United States and are positioned favorably to benefit from continued economic expansion and rent growth.
The investment, which closed in January of 2022, was made on behalf of an Equus sponsored value-added fund (“Equus Investment Partnership XII, L.P.”) and a consortium of strategic co-investment partners. The portfolio includes a tenant roster that spans eleven different industry segments, and no single tenant represents more than 3.5% of the portfolio’s income. The 5.4 million square foot portfolio includes industries spanning e-commerce, logistic providers, manufacturing, business-to-business, and business-to-consumer uses with no tenant industry accounting for more than 23% of the occupied square footage. The high occupancy and short-term nature of the rent roll provide for immediate value creation through a mark-to-market of rental rates and expansion of lease duration. “The diversity of the portfolio in terms of geography and tenancy combined with the in-fill nature of these locations should allow for durable cash flow and consistent rental rate growth going forward,” commented Tim Feron, Vice President of Acquisitions.
This portfolio investment builds on Equus’ investment strategy of aggregating high quality multi- and single-tenant in-fill properties located in desirable growth corridors across the United States. “This most recent investment further diversifies our platform holdings in the industrial sector and provides access to dynamic distribution locations poised to benefit from improving industrial fundamentals and sustained population growth. The portfolio fits well with our investment strategy that is focused on high quality in-fill shallow bay and distribution properties in high barrier to entry locations,” said Kyle Turner, Partner and Director of Investments of Equus. “We remain disciplined in our approach to appropriately scale our industrial holdings across the United States on behalf of our investment partners.”
Kyle Turner and Tim Feron, along with Laura Brestelli, Senior Vice President, Joe Felici, Vice President, Scott Miller, Associate and Ryan Klancic, Analyst, oversaw the transaction for the firm. Equus’ legal counsel was Howard Grossman at Cozen’ O’Connor and Eastdil Secured advised on the debt placement.
About Equus Capital Partners, Ltd.
Equus Capital Partners is one of the nation’s leading real estate investment managers. Equus’ diversified portfolio consists of industrial, multi-family, and office properties located throughout the United States. The firm is headquartered in the Philadelphia area with regional offices in Chicago, Los Angeles, Washington D.C., Atlanta, Raleigh-Durham, Phoenix, and South Florida. For additional information, please visit the company’s website at www.equuspartners.com.
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