Black Creek Industrial REIT IV to Buy $920 Million Portfolio from Prologis Fund
Black Creek Industrial REIT IV Inc., a publicly registered non-traded real estate investment trust, plans to purchase a portfolio of 48 industrial buildings from Prologis Targeted U.S. Logistics Fund L.P.
Black Creek Industrial REIT IV Inc., a publicly registered non-traded real estate investment trust, signed an agreement to purchase a portfolio of 48 industrial buildings totaling approximately 8.3 million square feet from Prologis Targeted U.S. Logistics Fund L.P in one or more transactions.
The total purchase price is expected to be $920 million, according to a filing with the Securities and Exchange Commission.
The portfolio, dubbed the Key Logistics Portfolio, is located in 13 geographic markets throughout the United States and is 96.4 percent occupied by 83 customers with a weighted-average remaining lease term of approximately 3.4 years.
One customer, multinational e-commerce company Radial Inc. individually leases 1 million square feet, or 11.6 percent of the portfolio’s total rentable area. Their annual base rent is currently $3.6 million and is subject to annual rent escalations of approximately 2 percent until 2025.
Black Creek Industrial REIT IV plans to fund the acquisition using proceeds from its public offering and funds from its existing credit facility.
The acquisition is expected to close on or around July 14, 2021.
After closing, Black Creek Industrial REIT IV expect that up to 12 of the 48 buildings in the Key Logistics Portfolio, totaling approximately 4.2 million square feet, will be placed in one or more Delaware statutory trusts and become a part of its DST program.
Initially, the interests in the DST properties are expected to be owned by a REIT subsidiary of the operating partnership and then sold to third-party investors.
In early 2020, affiliates of Prologis Inc. (NYSE: PLD) purchased a $4 billion real estate portfolio from another Black Creek REIT, Industrial Property Trust.
In recent company news, Ares Management Corporation (NYSE: ARES), a global alternative investment manager with $207 billion of assets under management, announced plans to purchase Black Creek Group’s U.S. real estate investment advisory and distribution business. The transaction is expected to close early in the third quarter of 2021.
Black Creek Industrial REIT IV’s initial public offering was declared effective by the SEC in July 2017, and as of April 30, 2021, had raised gross proceeds of approximately $1.2 billion from the sale of approximately 117 million shares in the offering, including distribution reinvestment plan of approximately $45.3 million.
As of April 30, 2021, the REIT owned and managed a real estate portfolio of 135 industrial buildings totaling 31.1 million square feet, located in 23 markets throughout the United States.
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