Investcorp Adds $160M to Chicago, Boston Portfolios

The company has acquired six industrial properties totaling approximately 1.8 million square feet of warehouse and distribution space.

Investcorp has invested $160 million in an industrial portfolio of six properties located in the Chicago and Boston metropolitan areas.

Ryan Bassett
Ryan Bassett

The portfolio consists of an aggregate of approximately 1.8 million square feet of warehouse and distribution space.

“As the retail and consumer landscape continues to shift toward e-commerce and consumers demand faster delivery, industrial assets located near major population centers will remain in high demand,” Ryan Bassett, Investcorp’s principal, real estate investment, told Commercial Property Executive. “Investcorp’s strategy to invest in strong, cash-flowing properties throughout key U.S. markets aligns with this shift in market dynamics.”

The three Chicago properties are cold storage industrial buildings that are used primarily for the storage and distribution of frozen food products. They are each located in close proximity to downtown Chicago.

Investcorp is partnering with Bridge Development Partners on these properties. Its company research found that there is limited cold storage industrial space in the area and minimal new development that is able to service the city’s growing consumer base as demand for fresh, organic and perishable food products continues to grow.

The three Boston-based properties consist of a warehouse, distribution and flex portfolio totaling nearly 1.1 million square feet. These properties are located in the southern portion of the Boston metropolitan area, with convenient access to major transportation thoroughfares.

Investcorp research shows that supply and demand dynamics are strong for industrial space in the Boston region and these properties boast a large and diversified tenant base with long lease durations, providing a steady cash flow for landlords. Investcorp has recapitalized these assets with Condyne Capital Partners, a vertically integrated owner/operator focused on northeastern commercial real estate assets.

Investcorp already had an interest in Boston, having purchased a four-building industrial portfolio in the region comprising 900,000 square feet in October 2016.

According to Bassett, an uptick in e-commerce has improved the fundamentals in the industrial/logistics real estate asset class, and combined with limited new supply in Chicago and Boston, creates attractive market dynamics for landlords in these locales.