EQT Exeter REIT Buys 2 Assets for $245M

EQT Exeter Actual Property Revenue Belief Inc. has acquired two industrial properties—one close to Harrisburg, Pa., and one within the Nashville, Tenn., space—for a complete of greater than $245 million. Each belongings got here on-line final yr and are absolutely leased below commitments of 10 years or extra.

The 1.2 million-plus-square-foot property at 3327 E. Harrisburg Pike in Middletown, Pa., in central Pennsylvania, is inside 5 miles of each Harrisburg Worldwide Airport and the Norfolk Southern Railway’s Rutherford Intermodal Yard. It bought for greater than $170 million and the earlier proprietor seems to have been Core5 Industrial Companions, CommercialEdge data reveals.

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The opposite asset, a 638,000-square-foot warehouse at 1500 Shoals Manner in Portland, Tenn., modified fingers for $75 million. The vendor was Al. Neyer and the tenant is Shoals Applied sciences Group, in response to a first-quarter industrial actual property market report from Lee & Associates. Shoals is a producer {of electrical} steadiness of programs parts.

EQRT acquired the 2 properties with proceeds from the sale of 91.2 million Class E models of its working partnership to EQT Exeter Holdings US, Inc., an affiliate of its sponsor. The offers additionally concerned debt financings, together with a $85.3 million mortgage from New York Life Insurance coverage Co., public data reveal.

Launched final August, the REIT is externally suggested by EQT Exeter, the actual property division of EQT AB. EQRT seeks to take a position about 80 % in business belongings, together with industrial of life science properties, and 20 % in multifamily or self storage belongings.

The REIT’s first acquisition, that closed in March, concerned a 449,642-square-foot industrial asset at 110 SE Interior Loop in Georgetown, Texas. The vendor was Portman Holdings.

Off the radar

Pennsylvania’s I-81/78 hall is going through a collision between weak tenant demand and new speculative house arriving available on the market, in response to a July report from Savills. In consequence, emptiness within the hall has risen for seven straight quarters, to five.6 % within the Central Pennsylvania submarket.

Luckily, the amount of house below development is down from one yr in the past and presently totals 4.5 million sq. toes within the area. Savills forecasts that homeowners of properties over 1 million sq. toes will begin to divide such areas into smaller blocks if they will’t discover sole tenants.