With M&A volumes looking uncertain for the rest of the year, dealmakers are seeing value in opportunistic real estate investments. Sunbelt industrial properties continue to add to the company’s expanding real estate portfolio as traders return to the region due to a variety of factors.
KKR acquires two industrial properties located in Georgia and Texas and serves the Atlanta and Dallas-Fort-Worth metropolitan areas. The purchase includes 1.1 million square feet across his four buildings in Buford, Georgia and approximately 1 million square feet across two buildings in Dallas.
Ben Bradney, a KKR director explained: We continue to invest in strategically located high quality industrial real estate and believe demographic trends and structurally perfect supply will continue to create very strong demand. “
The purchase represents a larger real estate trend happening across the dealmaker’s portfolio. The U.S. Sunbelt region has represented a major trading opportunity for companies looking to invest in both industrial and multifamily real estate.
A combination of factors such as lower taxes, rising population and employment, and increased demand in certain markets have pushed the Sunbelt to the forefront of industrial and multifamily real estate. Real estate investors will place value in areas of the country with rapidly growing populations, including the Dallas-Fort Worth metropolitan area and cities such as Atlanta.
Population growth combined with demand for industrial warehouse real estate will result in a need for increased investment in housing, in this case multi-family housing. The Sunbelt represents the perfect storm of population growth that offers opportunities to invest in both types of real estate.
As a result, the Sunbelt represents an opportunistic multifaceted investment strategy. KKR’s investments were made through its Core Plus Equity real estate strategy in the Americas. The company has already owned or acquired his $7 billion in logistics assets in the industrial sector over the last few years and now owns over 45 million square feet of his industrial real estate across the country.
Stay focused on Sunbelt industrial and multifamily real estate as a value-added investment for dealmakers.
– Cole Lipsky