Deals

Colony NorthStar buys portfolio for $201m

TA Realty sold the mid-Atlantic industrial portfolio out of its eighth and tenth value-added funds.

-

Colony NorthStar has purchased an industrial portfolio from TA Realty for $201 million, the seller said Monday.

Los Angeles-based Colony NorthStar is adding 20 properties totaling 2.8 million square feet to its industrial holdings. The properties are located in the mid-Atlantic, from Maryland through Delaware, with a concentration in Baltimore, Maryland.

Colony NorthStar was not available to comment, and it was unclear out of what vehicle capital for the purchase originated. The firm launched its open-ended vehicle, Colony Industrial Fund, in September, PERE previously reported. CIF had $1.4 billion of commitments and managed 39 million square feet of industrial space as of March 31, according to the firm’s first-quarter earnings.

Boston-based TA Realty originally purchased the assets through its eighth and tenth value-added funds, the firm said, although further details about those transactions were unknown at press time. TA Associates Realty Fund VIII, a 2006 vintage fund, attracted $1.7 billion, while Fund X, a 2012 vintage vehicle, had a total equity haul of $1.6 billion, according to PERE data. Investors in both funds included the Minnesota State Board of Investment, which earmarked $100 million to each vehicle, and the Montana Board of Investments, which committed $20 million to both funds.

TA Realty could not be reached for comment about the performance of individual investments or the overall funds.

“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,” said Tom Landry, managing partner at TA Realty. “The high quality of this portfolio, considering the strategic location of the assets and their strong recurring cash flows, attracted interest from a number of well-capitalized buyers.”

TA Realty managed $11.4 billion in assets as of June 30, 2016, according to its website.

Colony NorthStar, which went public in January after a three-way merger of Colony Capital, NorthStar Asset Management and NorthStar Realty Finance, currently has $56 billion in assets, according to its website.