JLL arranges $106.7M JV partnership for industrial acquisitions
The transaction includes an equity interest in an existing 931,398 SF portfolio in Charlotte and Phoenix
DALLAS, November 19, 2019 – JLL announced today that it has arranged a $106.7-million, strategic, industrial-focused joint venture partnership that includes an equity interest in an existing portfolio of 14 high-quality industrial assets totaling 931,398 square feet in addition to the intent to programmatically acquire additional industrial assets in key logistics markets.
JLL worked on behalf of The Meritex Company to arrange the partnership with AEW Capital Management, L.P.
The owned portfolio is in strategic markets consisting of Phoenix and Charlotte. The portfolio locations all have access to primary transportation arteries. Additionally, the partnership will continue the acquisition and select-development program Meritex has been successfully implementing for decades, acquiring core and core-plus, infill, multi-tenant industrial assets in high-growth markets.
“In addition to properties already in the portfolio, we’re aggressively looking to increase holdings in the key markets of Dallas, Miami, Phoenix and Charlotte, with several transactions in the works,” Meritex Chief Investment Officer Ray Kivett said. “We’d like to acquire an additional $125 million in properties over the next 18 months on behalf of the joint venture.”
The JLL Capital Markets team representing Meritex was led by Capital Markets Americas CEO Mark Gibson, Senior Managing Director Trey Morsbach, Managing Director Adam Herrin, Director Stephen Bailey and Senior Managing Director Jeremy Womack.
“Strategically aligned equity partners enable us to secure attractive investment opportunities and generate consistent returns for our investors through active portfolio management,” Meritex Chief Financial Officer Tom Hotovec added.
According to a recent JLL Industrial Outlook Report, Q2 2019 vacancy rate remains steady at five percent despite 65.2 million square feet of new industrial completions. In the second quarter, the U.S. industrial market maintained the momentum seen in Q1 2019 and continues to be near all-time historic lows.
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 advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
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Deal secured by Holliday Fenoglio Fowler LP (“HFF”) prior to being acquired by JLL on July 1, 2019. Co-brokerage services provided by Jones Lang LaSalle Americas, Inc.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of more than 93,000 as of September 30, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About The Meritex Company
The Meritex Company is the expert in putting properties and people together, offering the flexibility and innovation of a family-owned company, with the discipline and governance of a much larger business. The Meritex Company owns and manages approximately 11 million square feet of institutional grade, multi-tenant space made up of more than 90 properties in eight markets – Atlanta, Charlotte, Columbus, Houston, Indianapolis, Kansas City, Minneapolis-St. Paul and Phoenix. The Meritex Company is headquartered in Minneapolis-St. Paul. Visit meritex.com to learn more.
About AEW Capital Management, L.P.
Founded in 1981, AEW Capital Management, L.P. (AEW) provides real estate investment management services to investors worldwide. One of the world’s leading real estate investment advisors, AEW and its affiliates manage approximately $76 billion1 of property and securities in North America, Europe and Asia (as of June 30, 2019). Grounded in research and experienced in the complexities of the real estate and capital markets, AEW actively manages portfolios in both the public and private property markets and across the risk/return spectrum. AEW and its affiliates have offices in Boston, Los Angeles, London, Paris, Düsseldorf, Hong Kong, Singapore, Sydney and Tokyo, as well as additional offices in eight European cities For more information please visit aew.com.
1 Gross asset value as of June 30, 2019. Total AEW AUM includes $34.8 billion in assets managed by AEW SA and its affiliates and $638 million in advisory/subadvisory wrap and other accounts for which AEW provides only a model portfolio. Client staff and offices include AEW Capital Management and AEW SA. AEW includes (i) AEW Capital Management, L.P. in North America and its wholly owned subsidiaries, AEW Global Advisors (Europe) Ltd., AEW Asia Pte. Ltd. and AEW Asia Limited and (ii) affiliated company AEW SA and its subsidiaries. AEW Capital Management is AEW SA’s sister company and is commonly owned by Natixis Investment Managers.