Ivanhoé Cambridge Acquires Evergreen Industrial Properties from TPG Real Estate | Investor Interest in 'Last Mile' Warehouses Stays Hot as Montreal-based Investor Closes on U.S. Light Industrial Portfolio Owner

July 13, 2017

By Mark Heschmeyer 

 

Montreal-based Ivanhoé Cambridge made its first major move into the 'last mile' warehouse market this week, closing on its purchase of Evergreen Industrial Properties from private equity investment firm TPG Real Estate. The investment unit of Montreal pension fund advisor Caisse de Depot et Placement du Quebec announced it plans to buy more.

Financial terms of the transaction were not disclosed, although media reports speculated the owner/operator of the 16 million-square-foot light industrial portfolio across 150 properties sold for approximately $1 billion.

Evergreen, which focuses on infill, multi-tenant distribution properties measuring less than 250,000 square feet, has buildings in 18 markets, including Seattle, Denver, and Charlotte, Atlanta, Chicago, and Dallas. Such properties are in hot demand by investors who see them as serving the 'last-mile' distribution channel for online retailers to consumers.

 

 

 

 

 

 

 

 

 

 

 

7777 Market, El Paso

 

“We started looking at companies in the industrial real estate sector over two years ago with the intention of making a strategic investment in this asset class,” said Arthur Lloyd, president, Office North America, at Ivanhoé Cambridge.

 

“Industrial real estate offers an attractive current return and good diversification for our office portfolio in terms of underlying economic drivers. We believe we have found the right fit with Evergreen. We continue to look for opportunities as we plan to grow our industrial business in the years to come.”

TPG Real Estate created Evergreen in 2014, seeding the platform with a 7.5 million square foot portfolio acquisition. In May 2014, it bought a portfolio of 59 properties containing 7.48 million square feet from affiliates of Prologis for $375 million about $21/square foot.

 

 

 

 

 

 

 

 

 

12880 Valley Branch, Dallas

 

 

That deal was followed in August 2014 with a second portfolio purchase from Prologis involving 25 properties totaling 3 million square feet for $95.1 million or about $32/square foot.

Through 11 distinct acquisitions, Evergreen then went on to acquire an additional 127 properties in 18 targeted markets. Those deals included two large portfolio buys:

 

·  A portfolio of 42 properties containing 3.42 million square feet bought in September 2015 from affiliates of Crow Holdings for $162.9 million or about $50/square foot;

 

·  A portfolio of 32 properties containing 1.66 million square feet bought in August 2015 from the Fleeman family for $103 million or about $62/square foot.

 

“In creating Evergreen, we saw an opportunity to build a platform that was positioned to benefit from a dynamic sector shift to “last mile” and infill locations by light industrial and e-commerce users,” said Avi Banyasz, partner and co-head of TPG Real Estate.

 

 

 

 

 

 

 

 

907-1037 Thomas Ave. SW, Seattle
 

Graydon Bouchillon, a former executive at Colony Capital and Cobalt Capital, joined Evergreen as its CEO in 2015. Ivanhoé Cambridge acquired Evergreen’s full operating platform as well as its portfolio, and Bouchillon is expected to stay on under the company's new ownership.

Meanwhile, other major investors continue to make forays into the light-industrial market. After buying a 55-warehouse portfolio totaling 6 million square feet in April, TPG-rival Blackstone is reported to be interested in buying another 8.7 million-square-foot industrial portfolio from a DRA Advisors partnership.

That deal reportedly includes 100 light-industrial buildings with a heavy concentration in northern California with the remaining properties located in the St. Louis and Indianapolis markets.

 

 

 

Please reload

Featured Posts

Spotlight: Multi Tenant Distribution Warehouse Outlook

September 20, 2018

1/6
Please reload

Recent Posts
Please reload

Archive
Please reload

Follow Us
  • facebook
  • linkedin
BKM CAPITAL PARTNERS

 

Headquartered in Newport Beach, California, BKM Capital Partners is a real estate fund manager specializing in the acquisition and improvement of value-add multi-tenant industrial properties in metro areas across the Western U.S. Combining a deep knowledge of this niche industrial product type with in-house capabilities including on-site property management, asset management, and leasing to reposition and institutionalize light industrial assets, the firm continues to build on its proven track record, generating strong results with high levels of transparency and engagement for investors. 

Learn more about BKM Capital Partners »

BKM MANAGEMENT COMPANY

 

BKM Management Company manages a portfolio of 8.2 million square feet of multi-tenant industrial properties for BKM Capital Partner’s private and institutional investors. With a focus on “boots on the ground” execution at the property level, BKM has in-house capabilities for both property management and leasing. The teams at the property level are focused on ensuring the tenants thrive and that the properties managed in the most efficient way.

 

 

 

Learn more about BKM Management Company »

California // Colorado // Arizona // Washington // Nevada // Oregon

CONTACT US

Phone: 949.566.8800

  • linkedin
  • twitter
  • Facebook
  • instagram

© 2013-2020 BKM Capital Partners. BKM Capital Partners is a registered trademark. All Rights Reserved.