EQT Exeter to Acquire Five-Million-Square-Foot Industrial Assemblage from Prologis
- Acquisition reflects EQT Exeter’s conviction in the industrial sector and emphasis on investing behind high-quality assets across the globe
- Assemblage is strategically located along key logistics routes in the major metropolitan area of Minneapolis-St. Paul
- EQT Exeter will leverage its unique, vertically-integrated operating platform to upgrade, reposition and re-lease the Assemblage
EQT Exeter, a leading global real estate investment manager, today announced that the EQT Exeter Industrial Value Fund VI (“EQT Exeter”) has acquired 20 industrial properties (“the Assemblage”) strategically located in Minneapolis, MN, from Prologis, Inc. (“Prologis”), with plans to acquire an additional four properties by the final closing date.
The Assemblage consists of over five million square feet and features a mix of bulk, light industrial and last mile facilities with an average building size of more than 200,000 square feet. The properties are located across four prime Minneapolis logistics submarkets and offer proximate access to the I-494/I-694 beltway around the Minneapolis-St. Paul Metropolitan Area, serving as a key logistics route in the region. The properties also reflect in-demand building specifications and functional designs required by today’s modern, blue-chip tenants. The properties are 90% leased by 54 unique tenants, of which approximately 20% are existing tenants within EQT Exeter’s portfolio, demonstrating the depth of our global tenant client relationships.
“This transaction highlights our continued conviction in the industrial sector and reflects our keen asset selection and ability to swiftly execute on compelling small-, medium-, or large-scale opportunities in today’s market, while many of our peers stay on the sidelines,” said Matt Brodnik, Partner and Chief Investment Officer at EQT Exeter. “EQT Exeter is well-positioned to unlock the inherent value of these functional, well-located assets through our extensive network of ‘hyper-local’ real estate professionals that provide real estate solutions to over 1,200 corporate tenants globally. In opening our 28th U.S. office in Minneapolis, we plan to locally serve many of our existing tenants and leverage our in-house leasing and property management teams to upgrade, reposition and re-lease the Assemblage.”
With a population of over four million people, Minneapolis-St. Paul is the nation’s 16th-largest Metropolitan Statistical Area situated over 400 miles from the nearest major U.S. population center. Given its segregation from the national supply chain, Minneapolis-St. Paul is a market that rewards deep local presence and operations. The market’s sizeable end-user consumer base also attracts major corporate tenants that EQT Exeter serves on a global basis across its existing portfolio.
“Our strategy of engaging with the community, embodied in our ‘locals with locals’ approach, will not only help to better serve our new and existing tenant clients, but also create opportunities to add additional high-quality properties to our Minneapolis-St. Paul portfolio,” said Steve Stein, Managing Director at EQT Exeter. Minneapolis continues to experience positive market fundamentals driven by its declining new construction pipeline and positive net absorption figures, along with continued rent growth acceleration, which will benefit owners of existing, high-quality assets.
“We are pleased to add the Assemblage to our portfolio and plan to position these assets for long term success, particularly through strategic capital improvements and sustainability-focused upgrades like energy efficient LED lighting and select solar array installations,” said Stein.
The entire transaction is expected to close during the second quarter of 2024, subject to customary closing conditions.
Josh McArtor and Caitlin Clinton of Eastdil Secured arranged the transaction with assistance from Michael Caprile and Jusdon Welliver of CBRE National Partners.
Contact
EQT Press Office, [email protected]