Town Lane Pays $261M for Majority Stake in Raleigh Portfolio

Town Lane has acquired a majority stake in a 55-asset portfolio encompassing 2.7 million square feet of shallow bay industrial space—it paid $261 million, public records show. A joint venture of Corebridge Real Estate and Equus Capital Partners sold the Raleigh-Durham, N.C., properties. The former divested its ownership, while the latter retained a minority stake.

KKR issued a $407.6 million acquisition loan for the transaction, the same source reveals.

The portfolio encompasses six industrial parks, three of which have a combined 40 acres of land for future development. Outside of future project prospects, Town Lane plans to execute value-add strategies throughout the campuses.

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The six parks are:

• Sumner Business Park, intersection of Old Wake Forest Road and Interstate 540
• Lincoln Park North, 3208 Spottswood St.
• Lincoln Park South, 1800 Garner Station Blvd.
• Presidential Park West, 2320 Presidential Drive
• Lincoln Park East, 1200 Corporation Parkway
• Lincoln Park Central, 2200 Westinghouse Blvd.

Concentrated in last-mile locations, the properties serve a mix of regional and local tenants, including manufacturer Syntegon, construction company Yellow Dot Heating & Air, as well as retailer Mayhem Motorsports, among others.

Corebridge and Equus’ previous investment in the portfolio

Equus and Corebridge—formerly AIG—purchased the collection in 2021, which then comprised 53 properties spanning 2.6 million square feet. The duo paid $432.2 million for the buildings, and, according to Yardi research data, subsequently secured a bridge CMBS loan of $299.3 million from Goldman Sachs. The debt was due to mature last year.

During the venture’s four-year hold, it also invested in capital improvements and executed more than 2 million square feet of new, renewal and expansion leases. The portfolio was 95.2 percent leased in 2021.