Global investment firm KKR is expanding its commitment to the industrial sector, acquiring 9.7 million square feet of properties in seven major markets across the U.S. from High Street Logistics Properties for approximately $835 million. The acquisition grows KKR’s portfolio of industrial properties across its funds to approximately 30 million square feet in major metropolitan areas in the U.S. CBRE National Partners represented High Street in the transaction.
The new portfolio primarily consists of multitenant industrial assets in infill submarkets, complementing KKR’s existing footprint in Atlanta, Georgia, Baltimore, Maryland, Chicago, Illinois, Central Florida and Dallas, Texas. The acquisition also expands KKR’s industrial real estate portfolio to new markets in Central Pennsylvania and South Florida.
“This acquisition is an important milestone for our business as we continue to invest behind the strong demand fundamentals for warehouses that we see across the country,” said Roger Morales, KKR partner and head of commercial eeal estate acquisitions in the Americas. “This is a strategic portfolio for us that deepens our footprint in our existing markets and also expands our holdings into attractive new markets.”
KKR is making the investment through its Real Estate Partners Americas Fund II. Since launching a dedicated real estate platform in 2011, KKR has grown under management to approximately $14 billion across the U.S., Europe and Asia as of September 30.
