March 10, 2022

Longpoint, Brookfield Recapitalize National Logistics Portfolio

Longpoint Partners has closed its joint venture with Brookfield through its Real Estate Secondaries business and has recapitalized a $700-million, 3.8-million-square-foot national logistics portfolio that was held in one of Longpoint’s closed-end funds.

Longpoint, a Boston-based real estate investment company, will maintain an interest in the portfolio and continue to manage the day-to-day operations.

The portfolio comprises 31 logistics assets located in infill locations in high-growth markets including New Jersey, Washington, D.C., Dallas, South Florida, and Boston. The assets are approximately 97% leased to a diversified roster of over 200 tenants.

“Demographic shifts, technological advances, and supply chain disruptions are creating significant long-term value creation opportunities for well-located real estate assets,” Marcus Day, managing director at Brookfield Real Estate Secondaries, said in prepared remarks.

“We are seeing increasing demand for secondary capital solutions that give GPs and LPs additional runway to execute longer-term business plans, allowing them to participate in future upside.”

Paying a Premium for Existing Facilities Will Continue

Maggie Holmes, senior vice president, Northmarq, tells GlobeSt.com that industrial continues to be a highly desirable asset class for investors, especially newly constructed, institutional-quality facilities located in top tier markets.

“New industrial development is happening at an incredibly rapid pace,” she said, “but well-located available land is getting more and more scarce. We’re seeing the boundaries of some of the major metro areas expand as industrial construction pushes farther out, and there’s also been an uptick in secondary and tertiary market development.

“While new construction will always be desirable, I expect we’ll see investors willing to pay a similar premium for existing facilities in the core industrial markets.”