KKR expands Sunbelt industrial portfolio with $300m investment

KKR expands Sunbelt industrial portfolio with $300m investment

KKR has expanded its industrial real estate portfolio in the Sunbelt market with the acquisition of two properties, one located in Georgia and one in Texas, for $300 million.

The Atlanta property is located in Buford, GA and consists of four newly constructed Class A industrial warehouses totaling 1.1 million square feet. The property is adjacent to I-85, an important regional trucking route. The buildings are leased to a diverse mix of high-quality tenants.

The SouthPointe acquisition includes two Class A industrial warehouse buildings in south Dallas built in 2017 totaling approximately 1.0 million square feet. The property is located at the intersection of I-35E and I-20, important arteries for the greater DFW metroplex. The two buildings were 100% leased to three tenants at acquisition.

“We are very pleased to further expand our existing industrial footprints in these two important Sunbelt markets,” said Ben Brudney, a Director in the Real Estate group at KKR who oversees the firm’s industrial investments in the United States. “We are continuing to invest in strategically located, high-quality industrial real estate where we believe demographic trends and structurally full supply will continue to drive outsized demand.”

The purchases, in two separate transactions from two separate buyers, were made through KKR’s Americas core plus equity real estate strategy.