A private equity real estate firm and its partners acquired a 53-building industrial portfolio valued at $628 million that spans seven states.
TPG AG, Redfearn Capital, Atlanta Property Group and Matterhorn Venture Partners purchased 5.4 million square feet of distribution, logistics and manufacturing facilities across Florida, Georgia, North Carolina, Tennessee, Minnesota, Illinois and Oregon, according to a company press release.
A source familiar with the deal said DRA Advisors was the seller. The buyers declined to comment.
Redfearn said 75 percent of the properties, which are 87 percent occupied, are in the Southeast, with top markets including Lakeland, Tampa, Atlanta, Raleigh and Charlotte. They primarily consist of shallow bay warehouses.
Alex Redfearn, founder, president and CEO of Redfearn, said the deal reflects the company’s commitment to markets with “long-term demand.”
The Southeast markets in the portfolio continue to attract industrial demand because of population growth, expanding manufacturing and logistics operations, and robust transportation infrastructure, according to CBRE. Lakeland and Tampa benefit from the Interstate 4 corridor, while Atlanta, Raleigh and Charlotte serve as major regional distribution hubs connected by extensive interstate highway networks.
A spokesperson for Redfearn said no significant renovations are planned for any of the properties, and the market will dictate how long it decides to hold onto the buildings.
TPG AG said it plans to invest in deferred building repairs and upgrades aimed at retaining existing tenants.
Redfearn and TPG AG’s partnership began in 2021, and this deal marks their largest acquisition together. Redfearn’s assets under management surpassed $1.2 billion and the portfolio includes 8 million square feet mainly in the Southeast, while TPG AG globally manages $327 billion in assets.
In South Florida, the industrial market continued to slow in the second quarter, with more warehouse space sitting empty as the vacancy rate rose to 6.7 percent, up from 5.6 percent a year earlier, according to Lee & Associates. Tenants gave back more space than they leased for the fifth straight quarter, though the 2.3 million square feet of space returned to the market was an improvement from the first quarter.
Despite this, landlords continued raising rents, buildings sold for higher prices on average, and developers scaled back new construction, with 6.4 million square feet still underway. Investors remained active, led by Prologis’ $352 million acquisition of an industrial portfolio in Davie, while companies continued signing large leases, including Ryder System’s 409,000-square-foot deal in Opa-locka.
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