Arcapita Expands Cleveland Industrial Footprint
- Nov 15, 2018
A joint venture between Arcapita and Weston has acquired a seven-property industrial portfolio in Cleveland, Ohio. The portfolio totals 655,000 square feet of high-quality space and is currently occupied by a tenant roster of companies dealing in logistics, technology and assembly.
The Bahrain-based investors teamed with Ohio-based real estate owner-operator Weston for its knowledge and history in the area. Weston will now serve as the leasing and managing agent for the portfolio.
According to Arcapita CEO Atif Abdulmalik, the purchase is part of the company’s U.S. industrial strategy to target quality assets in close proximity to major population centers that enjoy strong consumer demand and developed supply chain infrastructures. Arcapita has made more than 80 investments with a total transaction value in excess of $30 billion.
“Expanding our U.S. real estate footprint is a key pillar of our growth strategy, and I am pleased with the progress our U.S. team has achieved in building our industrial portfolio,” he said.
Booming industrial market
According to the latest Colliers’ Cleveland industrial market report, demand for distribution space is expected to increase in the year ahead, driven by a boom in e-commerce and increased supply chain sophistication. The increasing demand for warehousing and distribution space has impacted the segment.
In fact, during the third quarter of 2018, Cleveland’s industrial market recorded nearly 500,000 square feet of positive net absorption and the overall market vacancy rate increased by 10 basis points to 4.9 percent thanks to the influx of new inventory.
The report also noted that the manufacturing sector has recorded two consecutive years of job growth in excess of three percent even as the local economy continues to diversify.
In July, Broadstone Net Lease Inc. acquired Anderson-DuBose Distribution Center, a 210,497-square-foot industrial facility outside of Warren, Ohio for $39.7 million from a REIT managed by U.S. Realty Advisors LLC.
Image courtesy of Arcapita