Barings & Vision Real Estate Partners Acquire Melanie Lane Industrial Portfolio

Rhea-AI Summary

Barings has acquired a 167,000 square foot industrial portfolio in Northern New Jersey's Morris County, partnering with Vision Real Estate Partners. This acquisition targets the high-demand last-mile delivery market, benefitting from a consumer base of 2.3 million within 15 miles. The Northern NJ industrial market boasts a low vacancy rate of 3.5% and high annual rent growth. Barings plans to enhance ESG features in these properties, affirming its focus on sustainability. The deal aligns with Barings' strategy to expand its footprint in infill industrial assets amidst strong demand dynamics.

Positive

• Acquisition of 167,000 square foot industrial portfolio enhances Barings' property portfolio.
• Strategic location near affluent communities boosts market potential.
• Low vacancy rate of 3.5% in Northern New Jersey indicates strong demand.
• Focus on ESG initiatives can attract socially-conscious investors.

Negative

• None.

CHARLOTTE, N.C., Oct. 19, 2021 /PRNewswire/ -- Barings, one of the world's leading investment managers, announced today that it has acquired an approximately 167,000 square foot industrial portfolio located in the highly-infill Northern New Jersey submarket of Morris County.

The Portfolio is comprised of three shallow-bay industrial facilities that feature a high-quality and diverse rent roll. Accessible to 2.3 million consumers within 15 miles and nearly 10 million consumers within an hour-drive, the Melanie Lane Industrial Portfolio is located near several of New Jersey's most affluent communities, including Morristown, Essex Fells, Chatham, Livingston, Madison, and Florham Park.

Barings acquired the Melanie Lane Industrial Portfolio with its joint-venture partner Vision Real Estate Partners. Well-known for its deep roots in the New Jersey/New York regional marketplace, Vision Real Estate Partners is a full-service real estate owner/operator and specializes in development, property management, asset management, and construction.

Barings has conviction that there is strong relative value in infill industrial assets due to the growing demand for last-mile delivery across the tri-state area. This conviction is reinforced by the strong annual rent growth experienced in the submarket and the limited availability of new developable land.

"We are excited to add the Melanie Lane industrial assets to Barings' portfolio," said Chris Berry, Managing Director for Barings U.S. Real Estate. "The firm's active management approach and targeted focus have translated to a successful industrial track record, and we look to continue this execution with this portfolio."

The Northern New Jersey industrial market is one of the most supply constrained markets in the U.S., and as of Q2 2021 had a vacancy rate of 3.5%. The fourth largest industrial market in the nation, the Northern New Jersey industrial market continues to see robust demand for warehouse space.

"We are excited to partner with Barings on the acquisition of the Melanie Lane Industrial Portfolio," said Ross Chomik, Managing Partner of Vision Real Estate Partners.  "The Portfolio was particularly attractive to us given its location and proximity to affluent surrounding communities and Northern NJ's strong highway network.  Vision's hands-on management platform and immediate local presence will provide a significant value-add to the Portfolio and our partnership.  This acquisition further demonstrates Vision's commitment to acquiring and developing industrial product in our core market."  

"Barings continues to target high-quality infill industrial assets, and we are excited to increase our footprint in the Northern New Jersey industrial market, given its strong supply/demand fundamentals, which position it for sustained growth into the future," said Payton Larson, Barings Director and Acquisitions Officer.

Consistent with Barings' commitment to sustainability, the Melanie Lane Industrial Portfolio will present the Barings team with opportunities to incorporate ESG-specific features, such as high-efficiency HVAC equipment, and the property has the ability to incorporate solar onto roofs.

About Barings

Barings is a $387+ billion* global investment manager sourcing differentiated opportunities and building long-term portfolios across public and private fixed income, real estate, and specialist equity markets. With investment professionals based in North America, Europe and Asia Pacific, the firm, a subsidiary of MassMutual, aims to serve its clients, communities and employees, and is committed to sustainable practices and responsible investment. Learn more at www.barings.com.

*Assets under management as of September 30, 2021

About Vision Real Estate Partners

Vision Real Estate Partners is a full-service real estate owner/operator, specializing in development, property management, asset management and construction. The firm is well known for its deep roots and experience in the New Jersey/New York regional marketplace, and for its track record of identifying properties with great potential and transforming them into superior assets. For more information, visit www.visionrep.com.

Contact 

Cheryl Krauss, Barings, 980-417-5858, cheryl.krauss@barings.com

21-1873664

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/barings--vision-real-estate-partners-acquire-melanie-lane-industrial-portfolio-301403477.html

SOURCE Barings

FAQ

What is the significance of the acquisition of the Melanie Lane Industrial Portfolio by Barings?

The acquisition signifies Barings' commitment to expanding its presence in high-demand industrial assets, particularly in areas with strong last-mile delivery needs.

When was the Melanie Lane Industrial Portfolio acquired?

The Melanie Lane Industrial Portfolio was acquired on October 19, 2021.

What are the key features of the acquired industrial portfolio?

The portfolio consists of three shallow-bay industrial facilities with access to 2.3 million consumers within 15 miles and a strong rent roll.

Who partnered with Barings for this acquisition?

Barings partnered with Vision Real Estate Partners for the acquisition of the Melanie Lane Industrial Portfolio.

How does the Northern New Jersey industrial market impact Barings' investment?

The Northern New Jersey industrial market features a low vacancy rate of 3.5% and strong demand for warehouse space, making it an attractive investment for Barings.