Starwood Real Estate Income Trust buys US industrial portfolio

Starwood Real Estate Income Trust buys US industrial portfolio
Photo:Courtesy of Starwood Real Estate Income Trust, Inc.

Starwood Real Estate Income Trust, Inc., a non-traded REIT managed by Starwood Capital Group, announced that it has acquired the Midwest Industrial Portfolio, a 33-asset industrial portfolio comprised of 4.1 million square feet of primarily Class A properties, for $320 million.

The portfolio is located across Chicago (43%), Indianapolis (33%), Columbus (16%) and Milwaukee (8%), all of which are top 25 industrial markets in the US.

The Midwest Industrial Portfolio is currently 98% leased to 50 tenants and has maintained an average occupancy of just under 95% over the last 10 years.

“Industrial is a great asset class and operating fundamentals point to continued strength in the coming years,” said Garret Overlock, Vice President of Acquisitions at Starwood Capital.

“We love this portfolio for SREIT for a number of reasons. These are major industrial markets that service not only local but regional and national distribution needs, the tenant quality and diversity is very high, and the light industrial nature of the portfolio mitigates our exposure to future supply, much of which is concentrated in the bulk industrial space (properties greater than 250,000 square feet). Further, light industrial continues to witness the lions’ share of tenant demand in the industrial sector. It’s another strong acquisition for SREIT,” he added.

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“We are also pleased to establish an ongoing partnership with Becknell Industrial in connection with this transaction. Becknell is a market-leading developer, owner and manager of industrial properties across the US and brings exceptional expertise and experience to the portfolio,” said Garret Overlock.