Sep 01, 2020

Crow Holdings Sells U.S. Industrial Portfolio Spanning Five Cities

CoStar News (August 27, 2020) - The two-building logistics complex in Lancaster, Texas, outside of Dallas, was one of the properties to trade hands in the portfolio deal. (Crow Holdings)

By Candace Carlisle

Crow Holdings, a Dallas-based real estate investment and development firm, has sold a U.S. industrial portfolio it developed to a global investor in one of the largest deals of its kind since the onset of the COVID-19 pandemic.

The portfolio totals nearly 4.7 million square feet spanning 15 buildings in five key U.S. cities with growing population centers near gateway airports: Atlanta, Dallas, Denver, Fort Worth and Phoenix.

The firm, with funds managed by Crow Holdings Capital, its real estate investment management arm, sold the portfolio to PGIM Real Estate, a Madison, New Jersey-based global investor managing more than $1 trillion across a variety of assets, including real estate. PGIM paid $425 million for the portfolio, according to a statement from PGIM.

The deal marks one of the largest industrial portfolios to trade during the COVID-19 pandemic, according to Crow Holdings, with its leased occupancy across the portfolio improving three-fold during the sale process. Tenants include a variety of national retail chains and companies, including a recently signed Mars Petcare, Berlin Packaging, Comptree and Amazon, according to CoStar data.

The properties in the portfolio include:

  • A two-building industrial complex at 2801 N. Houston School Road and a neighboring site totaling more than 1.2 million square feet of industrial space in Lancaster, Texas, a suburb just south of downtown Dallas.
  • A 251,501-square-foot industrial building at 725 Factory Shoals Road in Lithia Springs, Georgia, a suburb less than 15 miles from downtown Atlanta.
  • A 262,530-square-foot industrial building at 965 Douglas Hill Road in Lithia Springs, Georgia, outside of Atlanta.
  • A 442,000-square-foot logistics hub at 1720 Peachtree Industrial Blvd. in Buford, Georgia, which is about 40 miles northeast of downtown Atlanta.
  • A 209,192-square-foot industrial building at 6525 Mall Blvd. in Union City, Georgia, about 18 miles south of downtown Atlanta.
  • A two-building industrial complex at 10205 W. Roosevelt St. and 10209 W. Roosevelt St. in Avondale, Arizona, about 13 miles outside of Phoenix.
  • A four-building, 1 million-square-foot logistics hub called Carter Distribution Center, which includes the building at 6633 Oak Grove Road in Fort Worth, Texas, which is part of Dallas-Fort Worth, the fourth largest metropolitan area in the country with more than 7.5 million residents.
  • A three-building, 594,400-square-foot industrial complex near Tower Road and East 84th Avenue in Denver.

Crow Holdings, a 70-year-old company, plans to capitalize on the forces driving the growth of e-commerce in the last several years, said Michael Levy, CEO of Crow Holdings. The pandemic has further accelerated those forces with increased e-commerce sales and a renewed focus for companies to keep deeper inventory levels, he said, adding all these forces point to a positive long-term outlook for industrial real estate.

Crow Holdings has 46 industrial projects currently in its development pipeline.

JLL is projecting e-commerce sales to hit $1.5 trillion, increasing the demand for industrial real estate by an additional 1 billion square feet. That has developers, including Crow Holdings, continuing to bet on new speculative industrial development to meet that anticipated demand.

Dallas-Fort Worth ranks as the nation's No. 1 industrial market based on supply and demand, according to a Cushman & Wakefield report published earlier this year. Atlanta, which also pops up in the portfolio is ranked as one of the top U.S. markets in the report.

This overview is designed to introduce Crow Holdings and its various operating companies. Crow Holdings Capital is a U.S. SEC registered investment adviser and is the manager to the Crow Holdings Capital Funds. Crow Holdings Partners, L.L.C. is a U.S. SEC registered investment adviser and is the manager of the Crow Holdings Industrial Build-to-Hold Fund. Crow Holdings Capital, Crow Holdings Partners, Trammell Crow Residential, Crow Holdings Industrial and Crow Holdings Office are operated separately and independently from one another with separate senior leadership and investment committees. SEC registration does not imply a certain level of skill or training.