Realterm and J.P. Morgan acquire 1.75 MSF premier logistics portfolio

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.