PGIM Real Estate Adds $700M Industrial Portfolio

Acquired through a recapitalization with the existing ownership, the national portfolio includes 30 buildings totaling 5.4 million square feet across five key markets.

Valley Avenue Business Park in Puyallup, Wash., forms part of the newly acquired portfolio

PGIM Real Estate has continued an industrial acquisition streak by picking up a 30-property portfolio valued at about $700 million with warehouse developer IAC Properties. Located across five major markets, the portfolio spans 5.4 million square feet and is 97 percent leased.

READ ALSO: Blackstone Acquires Suburban Seattle Warehouse

PGIM Real Estate, which has $182 billion in gross assets under management and administration, acquired the properties through a recapitalization with the existing owner, Perlmutter Investment Co. affiliate IAC. The investment was made on behalf of PGIM Real Estate’s core real estate strategy.

Located in Los Angeles, the Greater Chicago area, Seattle, Dallas-Fort Worth, and Louisville, Ky., the properties are in markets with high barriers to entry, exceptionally strong fundamentals and continued growth amid the COVID-19 crisis, according to the company. 

The new deal adds to the firm’s existing industrial platform of 107 million square feet globally and 45 million square feet in the U.S. During the third quarter, PGIM Real Estate has acquired 49 industrial buildings totaling 12.3 million nationwide, including a 15-building warehouse portfolio purchased from Crow Holdings for $425 million in August.

In May, the company provided $65.9 million in acquisition financing to TA Realty for a 1 million-square-foot industrial facility in Riverside, Calif. The latest acquisition of 30 properties was led by Todd Goldberg, Steven Oliveira, Kevin Interlicchio and Laura Nugent of PGIM Real Estate’s transaction team.

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