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A Compendium of Property & Capital News
Jul 22
A Compendium of Property & Capital News

Shift From Bricks to E-commerce Plays Well for TA Realty’s $200M+ Industrial Sale

July 27, 2017 - By The Real Reporter
Aerial of I-95 and Baltimore

BOSTON—Completing a 2.8 million-square-foot, 20 property industrial portfolio sale to Colony NorthStar, TA Realty seems to have capitalized on the seismic shift in consumer buying and online retail sales. “It’s the Amazons, Wayfairs, and other big online retailers that have created this affection and attention for industrial products, relays Jim Raisides, partner for TA, and team orchestrator of the portfolio swap that yielded $201 Million.

The properties stretch along the I-95 corridor, with the heaviest concentration in the Baltimore area; a passageway that Raisides says made the portfolio very desirable. “These assets are very well positioned for the fundamental shift to local supply-chain distribution centers in closer concentrations to major metro areas.” The industrial package is made up of smaller assets, but when combined in a strategic geography makes for an appealing offer; one that saw 15-20 original bidders before NorthStar finalized the deal. “The buildings are smaller spaces but being in tighter proximity makes them perfect for the “last mile trend,” where the properties lend to shorter delivery time,” adds Raisides.

It is a trend that has seen industrial become the darling of the party, where the product is even outperforming multi family of late, concurs Raisides. “It (industrial) is a steady income generating type that has a lot of liquidity and far fewer improvements needed for investors, which improves the yield piece and brings a more appealing hook to the offer, he affirmed.”

The scheme to purchase and hold several smaller sized industrial assets, then bring them to market in a coordinated manner is a process that takes time and effort but has proven rewards for the TA team. “This transaction speaks to the effectiveness of our aggregation strategy, having built a premier portfolio of industrial assets in strong trade corridors on the east coast,” lauds Tom Landry, Managing Partner at TA Realty. Partner, Nicole Dutra Grinnell, executed the disposition, while fellow Partner, J. Blair Lyne, acquired the majority of the industrial assets in the portfolio.

TA plans to continue its long-standing industrial approach in other major distribution areas. “We have many industrial assets across the country ... we focus on what we consider the supply chain hubs on both coasts, New Jersey, Baltimore, LA, Dallas, and Atlanta are some, concludes Raisides. He considers the industrial product to be strong and a true “tail wind” for the big online consumer purchase shift and future growth.

405 Pencadar Drive, Newark NJ