JLL arranges $106.7M joint venture partnership for industrial acquisitions

Real Estate | 19 Nov |

JLL announced today that it has arranged a $106.7-million, strategic, industrial-focused joint venture partnership that includes an equity interest in an existing portfolio of 14 high-quality industrial assets totaling 931,398 square feet in addition to the intent to programmatically acquire additional industrial assets in key logistics markets.

JLL worked on behalf of The Meritex Company to arrange the partnership with AEW Capital Management, L.P.

The owned portfolio is in strategic markets consisting of Phoenix and Charlotte. The portfolio locations all have access to primary transportation arteries. Additionally, the partnership will continue the acquisition and select-development program Meritex has been successfully implementing for decades, acquiring core and core-plus, infill, multi-tenant industrial assets in high-growth markets. 

“In addition to properties already in the portfolio, we’re aggressively looking to increase holdings in the key markets of Dallas, Miami, Phoenix and Charlotte, with several transactions in the works,” Meritex Chief Investment Officer Ray Kivett said. “We’d like to acquire an additional $125 million in properties over the next 18 months on behalf of the joint venture.”

The JLL Capital Markets team representing Meritex was led by Capital Markets Americas CEO Mark Gibson, Senior Managing Director Trey Morsbach, Managing Director Adam Herrin, Director Stephen Bailey and Senior Managing Director Jeremy Womack.

“Strategically aligned equity partners enable us to secure attractive investment opportunities and generate consistent returns for our investors through active portfolio management,” Meritex Chief Financial Officer Tom Hotovec added. 

According to a recent JLL Industrial Outlook Report, Q2 2019 vacancy rate remains steady at five percent despite 65.2 million square feet of new industrial completions. In the second quarter, the U.S. industrial market maintained the momentum seen in Q1 2019 and continues to be near all-time historic lows.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.

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