Global investment firm KKR has expanded its industrial real estate portfolio with the acquisition of a two building, approximately 1.5 million square foot, industrial distribution campus in Allentown, Pennsylvania.
KKR acquired the industrial campus through its core plus real estate strategy from GLP Capital Partners (GCP).
Completed in 2019 and 2020, the two buildings feature state-of-the-art design and specifications, including 36’ clear height, 190’ truck courts and large loading areas.
The buildings were each 100% leased at acquisition to a high quality tenant on a long-term basis. Both the tenant and prior ownership have invested significant capital into the campus.
The property is strategically located in the heart of the Lehigh Valley, adjacent to the I-78 interstate highway, providing access to major East Coast metropolitan areas. New York, Washington D.C. and Philadelphia are all within a one to three hour drive.
KKR said the acquisition increases its industrial real estate footprint in Pennsylvania to just over three million square feet.
“We are excited to grow our portfolio in one of the country’s top distribution markets with this high quality asset,” said Ben Brudney, a Director in the Real Estate group at KKR who oversees the firm’s industrial investments in the United States. “We believe that state-of-the-art distribution centers in highly infill locations with strong demand and barriers to new supply will continue to benefit from the acceleration of e-Commerce penetration.”