25 Feb 2025
Investcorp, a leading global alternative investment firm, today announced that it has acquired two industrial portfolios in the Minneapolis and Baltimore markets for a gross transaction value of over $335 million. The acquisitions bolster Investcorp’s strategy to expand its presence in key U.S. industrial markets with significant population bases, diversified economies and resilient tenant demand. The portfolios comprise a total of 27 properties and 2.7 million square feet, and include:
- Minneapolis Industrial Portfolio, a 17-building portfolio spanning nearly 1.9 million square feet; and
- Baltimore Industrial Portfolio, a 10-building portfolio totaling approximately 881,000 square feet.
Herb Myers, Global Co-Head of Real Assets at Investcorp, said, “The evolution of supply-chain logistics over the past several years has continued to support demand in the U.S. industrial sector, which has retained its strong fundamentals throughout market cycles despite broader economic volatility. With e-commerce showing no sign of slowing and a lack of new supply for infill and urban products, we continue to believe in the long-term viability of the asset class.”
As of Q4 2024, market rent growth over the past three years averaged 13.4% in Baltimore and 11.4% in Minneapolis, outpacing the average of 9.3% in the top 50 U.S. metropolitan areas, according to Green Street Advisors. Minneapolis is anchored by a diverse economy with robust labor dynamics, hosting 17 Fortune 500 companies including Target Corporation, Best Buy Co., Inc., 3M Company and General Mills, Inc. Baltimore has seen a recent influx of companies due partially to its pro-business environment, and major corporations such as Optum, Inc., Jones Lang LaSalle Inc. (JLL), Under Armour, Inc. and Morgan Stanley & Co. call the city home.
“The Minneapolis and Baltimore portfolio acquisitions offer us a unique opportunity to scale our presence in two markets with highly diversified tenancies,” stated Michael Moriarty, Managing Director and Head of Commercial Acquisitions at Investcorp. “The properties making up each of these portfolios feature favorable characteristics such as high average clear heights, ample loading docks, plentiful parking and convenient locations proximate to major thoroughfares, employment centers and residential neighborhoods, ensuring they’ll be able to serve the needs of a wide variety of tenants. We look forward to continuing to seek attractive industrial investment opportunities in fundamentally strong markets with proximity to established population bases across the U.S.”
Investcorp is among the top-5 largest cross-border buyers of U.S. real estate over the past five years, according to Real Capital Analytics. The firm’s U.S. real estate strategy invests primarily in the industrial and residential asset classes, with 98% of its portfolio consisting of these property types. Additionally, in 2024, the Investcorp real estate team placed at number 51 on PERE’s PERE 100, one of the most prominent rankings of real estate equity investment managers in the industry.
Since 1996, Investcorp has acquired approximately 1,400 properties for a total value of over $26 billion.