TPG-Led JV Pays $628M for Industrial Portfolio

TPG, together with with Atlanta Property Group, Matterhorn Venture Partners and Redfearn Capital, has paid $628 million for a 5.4 million-square-foot industrial portfolio spread across seven states. The majority of the assets—75 percent of the collection—is concentrated in the Southeast.

DRA Advisors sold the facilities, The Real Deal reported, citing a source familiar with the deal.

TPG completed the transaction through its TPG AG U.S. Real Estate platform. Eastdil Secured arranged debt financing for the acquisition and Greenberg Traurig served as legal counsel.

The industrial portfolio comprises 53 shallow-bay industrial buildings, located across Florida, Georgia, North Carolina, Tennessee, Minnesota, Illinois and Oregon, that were 87 percent leased at the time of sale. The Southeast component is spread across key industrial markets, such as Tampa, Fla., Lakeland, Fla., Atlanta, Raleigh-Durham, N.C., Charlotte, N.C. and Memphis, Tenn. TPG AG plans a series of targeted capital improvements across the portfolio.

Local market expertise will guide the joint ownership and management strategy, with Redfearn Capital focusing on Tampa, Lakeland and Memphis assets. Atlanta Property Group will oversee the footprint in Atlanta, Charlotte and Raleigh-Durham, while Matterhorn Venture Partners will manage the Chicago buildings. TPG and Matterhorn partnered to acquire industrial properties earlier this year.

The current deal represents the largest investment to date between TPG and Redfearn, which joined forces for industrial acquisitions in 2021. Redfearn’s assets under management now total more than $1.2 billion, while its portfolio has grown to roughly 8 million square feet. TPG AG, meanwhile, has $19.2 billion in properties under management.

Continued investor interest in the Southeast

Large-scale industrial investments represented a significant part of the transactions that closed in the Southeast in the first half of the year.

In June, EQT Real Estate purchased a 2.4 million-square-foot logistics portfolio comprising three properties in Georgia and Florida. The trio is located near major ports and transportations corridors in Savannah, Ga., Jacksonville, Fla., and Lakeland.

The same month, PGIM and Miramar Capital sold a 1.6 million-square-foot collection across Florida, South Carolina, Virginia and North Carolina. The buyer, an entity linked to SMBC Group, paid $300 million for the portfolio.

And in April, Provident acquired a 13-building, 2.5 million-square-foot industrial portfolio in the Memphis metropolitan area from Link Logistics. The collection changed hands for $115 million.