- What Nine industrial properties in the Northeast U.S. are up for sale
- Why Pros say Brookfield is divesting the warehouses because it already has a substantial footprint in the region
- What next Raith Capital Partners has agreed to pay $200m for the 841,000 sq ft package
Brookfield, fresh off its blockbuster industrial portfolio acquisition from DRA Advisors, is flipping the Northeast portion of the package to Raith Capital Partners for US$145m ($200.3m), Green Street News can reveal.
The new deal encompasses 841,000 sq ft across nine properties in three states. The price works out to US$172/sq ft. Eastdil Secured is brokering the deal.
There are five properties in Boston totaling 532,000 sq ft, two in New Jersey (147,000 sq ft) and one each in Harrisburg, Pa., (112,000 sq ft) and Eastern Pennsylvania (50,000 sq ft).
Market pros say Brookfield is divesting the warehouses because it already has a substantial footprint of industrial properties in the Northeast.
The investment titan closed on its purchase of the broader, 14.6 million sq ft industrial portfolio in July, paying DRA US$1.3bn, or $89/sq ft, in the sector’s largest deal this year. That transaction, also brokered by Eastdil, encompassed 128 properties across 20 markets.
The properties were 97.9% leased when DRA began marketing them in February. Part of the pitch was the package’s upside potential, with the opportunity to lift rents 35% upon rollover. The warehouses in the larger package were 33 years old on average with 24-foot ceilings and truck court depths of 137 feet.
The original portfolio also included 8.1 million sq ft in 83 properties in Sun Belt markets, including Atlanta, Dallas, Houston and Memphis. Another 36 properties totaling 5.7 million sq ft are in the Midwest markets of Chicago, Cincinnati, Indianapolis and Columbus, Ohio.
