QuadReal, LaSalle Recapitalize $495M Industrial Portfolio
The properties total more than 3 million square feet.
QuadReal Property Group has recapitalized a 3.3 million-square-foot U.S. industrial property portfolio via a partnership with LaSalle Investment Management that will see LaSalle acquire a 49 percent stake in the assets. The portfolio is valued at $495 million.
The portfolio includes 11 assets near major population centers and transportation infrastructure. The properties are in five states, including Georgia, Pennsylvania, New Jersey, Texas and Washington state.
The partnership also means additional capital commitments from LaSalle for the acquisition of similar industrial assets in the future, though the partners didn’t specify a total. Those commitments mean “a significant runway to expand its real estate investment portfolio in partnership with QuadReal,” according to the partners in a statement.
Vancouver, BC-based QuadReal is the real estate arm of British Columbia Investment Management Corp. and currently has about $94 billion in assets under management. LaSalle manages $88.5 billion of assets in private and public real estate equity and debt investments.
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In a recent deal, LaSalle Investment Management and Phelan Development have obtained a $66.7 million refinancing loan for two industrial facilities in Lathrop, Calif. Affinius Capital issued the debt for the properties totaling 847,000 square feet in a deal arranged by Preferred Capital Advisors.
Earlier this year, QuadReal and joint venture partner Valor Real Estate Partners, a specialist in urban logistics in Europe, completed a £260 million ($344 million) refinancing with Blackstone Real Estate Debt Strategies. The deal involved a London portfolio of about 1 million square feet.
Industrial investment stabilizes
Investor interest in U.S. industrial properties has slowed from the frenzy seen only a few years ago to a more stable level. Year-to-date, 2025 sales totaled about $47.6 billion nationally through mid-third-quarter, according to investment consultancy MMCG Invest, down from 2021-22 but not collapsing.
Investment sales volume didn’t change much between the second quarter of this year and the third, and also compared with the third quarter of 2024, MMCG reported. That dynamic suggests that buyers and sellers are gradually narrowing the bid-ask gap.
Capital is still out there for industrial deals, but it has become much more selective, MMCG posits.
In 2021, stabilized warehouse assets were trading at yields in the mid-4 percent range, while by late 2025, typical cap rates for institutional-quality industrial assets are hovering around 6 percent, illustrating shifts in industrial market trends.
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