JLL advised new joint venture on plans to invest $2B in multi-tenant warehousing

Rhea-AI Summary

On Nov. 4, 2021, JLL announced a $800 million joint venture with Arden Group and Arcapita Group focused on multi-tenant warehousing in major U.S. markets. The venture's initial acquisition includes an 18-property, 5-million-square-foot portfolio for $550 million across cities like Atlanta and Dallas. An additional $250 million investment will expand the portfolio to 32 properties totaling over 7 million square feet. The joint venture aims to increase asset value to $2 billion, targeting infill warehouses amidst growing logistics demand and rent growth.

Positive

• Formation of an $800 million joint venture, enhancing JLL's market position.
• Initial portfolio acquisition valued at $550 million, indicating significant investment in U.S. industrial real estate.
• Planned growth of joint venture to $2 billion in gross asset value, reflecting confidence in market demand.

Negative

• None.

NEW YORK, Nov. 4, 2021 /PRNewswire/ -- JLL announced today that its affiliate Jones Lang LaSalle Securities LLC (JLLS) has advised on the formation of an $800 million joint venture and helped arrange acquisition financing on behalf of Arden Group and Arcapita Group for a portfolio of small- and medium-bay multi-tenant warehousing space across major U.S. markets.

The new joint venture acquired an initial $550 million, 18-property, five-million-square-foot industrial portfolio across Atlanta, Charlotte, Columbus, Dallas, Houston, Philadelphia and Indianapolis. An additional $250 million of investment will close soon and bring the total to $800 million across 32 properties with more than 1,100 tenants and totaling more than seven million square feet in nine U.S. markets.

In addition, the joint venture plans to grow the portfolio up to $2 billion in gross asset value across the top 25 U.S. industrial markets. The joint venture is targeting infill warehouses, which have experienced extremely low new supply due to the limited availability of undeveloped land near urban centers. With growing demand across the logistics spectrum, rent growth for the multi-tenant subsector is expected to continue.

A JLL research report details how small- and medium-bay multi-tenant industrial, or multi-use logistics, assets that the joint venture is targeting are seeing increased investor interest due to the irreplaceable nature of the asset sub-class and compelling rent growth profiles. Additionally, industry fundamentals driven by macroeconomic factors such as reshoring and acceleration of e-commerce adoption has increased demand for these smaller, multi-tenant industrial assets, making them highly sought after as last-mile logistics locations close to end users.

A team comprising members from JLLS and JLL Capital Markets advised the venture and arranged the financing and was led by Managing Director Sheheryar Hafeez, Senior Managing Director John Huguenard, Senior Managing Director John Rose, Senior Director Brian Walsh, Senior Director Ross Bratcher and Associates Anderson Granger and Michael Brady.

"Arden has built a best-in-class multi-tenant focused industrial platform, and we are very pleased to have advised both Arden and Arcapita in forming what we are confident will be a successful partnership," Hafeez said. "We are excited to see the venture grow further from here."  

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

For more news, videos and research resources on JLL, please visit our newsroom.

About Arden Group
Arden Group is a vertically integrated real estate investment management firm focused on equity and debt investments in the top 25 U.S. markets. Founded in 1989, Arden has acquired approximately $6 billion of properties and asset managed in excess of $11 billion of commercial real estate assets. In 2012, Arden Group established Arden Fund Management, its real estate equity and debt fund management business with offices in Philadelphia, New York, Tampa, Miami, Minneapolis and Newport Beach. Arden Group has been consistently ranked globally as a top performing Private Fund Manager by both Cambridge Associates and Preqin including Preqin's #1 global ranking in 2017, 2018 and 2019. For more information, visit ardengroup.com

About Arcapita Group
Arcapita Group, founded in 1997, is an originator of investments in private equity and real estate assets which comply with Sharia principles. Headquartered in Manama, Bahrain, Arcapita also has offices in Atlanta, London and Singapore. The firm serves a group of investors in the Middle East region and Southeast Asia. Investors include investment firms, family offices, high net-worth individuals, and a sovereign wealth fund. Arcapita completed over 80 investments in the United States, Europe, the Middle East, and Asia for a total transaction value exceeding $30 billion. The board of directors contain nine members, mainly from the Gulf Cooperation Council. Members are chairs, previous chairpersons, or current Chief Executive Officers of sovereign wealth funds or investment firms. For more information about, please visit: arcapita.com. 

About JLL
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion in 2020, operations in over 80 countries and a global workforce more than 95,000 as of September 30, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.

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Contact: Kimberly Steele, JLL Manager, Public Relations
Phone: +1 713 852 3420
Email:  Kimberly.Steele@am.jll.com

 

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SOURCE JLL

FAQ

What is the total value of the joint venture formed by JLL, Arden Group, and Arcapita Group?

The total value of the joint venture is $800 million.

What type of properties is the new joint venture investing in?

The joint venture is investing in small- and medium-bay multi-tenant warehousing properties.

How much was the initial acquisition by the joint venture?

The initial acquisition was valued at $550 million.

Which U.S. cities are included in the joint venture's initial portfolio?

The initial portfolio includes properties in Atlanta, Charlotte, Columbus, Dallas, Houston, Philadelphia, and Indianapolis.

What is the future growth plan for the joint venture?

The joint venture plans to increase its portfolio to $2 billion in gross asset value.