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2011 Nevada Blvd, Charlotte, NC |
11903 General Drive, Charlotte, NC |
Portfolio valued at $575 million
Recapitalizes one-third of Childress Klein’s 13.2 million square foot industrial portfolio
INDUS portfolio now totals 13.6 million square feet
NEW YORK, NEW YORK (December 5, 2024) – INDUS Realty Trust, Inc. (“INDUS” or the “Company”), a U.S.-based logistics real estate business, today announced its acquisition of a majority interest in a modern 4.3 million square foot logistics portfolio comprising 21 buildings (the “Carolinas Portfolio”). This acquisition is part of a recapitalization of approximately one-third of Childress Klein’s (“CK”) 13.2 million square foot industrial portfolio. INDUS and CK have entered into a joint venture on the Carolinas Portfolio, with CK retaining a minority ownership stake and continuing to manage and lease the properties. The acquisition values the Carolinas Portfolio at $575 million.
The Carolinas Portfolio, which is 94% leased, includes 16 buildings in Charlotte, North Carolina, and 5 buildings in Charleston, South Carolina. These regions have been among the top-performing industrial markets driven by their robust population growth and economic development, strategic access to essential infrastructure such as ports and intermodal yards, and burgeoning manufacturing investments. Located in the prime submarkets of Charlotte and Charleston, the Carolinas Portfolio features a mix of last-mile, regional, and bulk logistics properties, serving a diverse array of high-quality tenants. The buildings and individual tenant suites average 205,000 and 78,000 square feet in size, respectively, and the properties have a weighted average age of 13 years.
Michael Gamzon, President and CEO of INDUS, stated, “We are pleased to increase our scale in the Charlotte and Charleston markets and grow our exposure to the fast-growing Southeastern U.S. region. The Carolinas Portfolio is exceptionally well-located in strongly performing, infill submarkets and has been constructed, maintained and leased to the highest quality standards by Childress Klein. This investment positions us for continued success in the Carolinas and we look forward to a long-term relationship with the great team at CK.”
Mr. Gamzon added, “This transaction also demonstrates the support of our partners, Centerbridge and GIC, to grow our platform through further investment in individual properties, portfolios, industrial land, and development opportunities in select high-growth markets across the United States.”
Fred Klein, Founding Partner of Childress Klein, commented, “We look forward to our joint venture and the opportunity to partner with INDUS. Their long-term partnership perspective aligns very well with our own philosophy and core values. This recapitalization of a portion of our industrial portfolio allows CK to achieve a number of strategic objectives while continuing to be long-term owners and operators of this exceptional infill industrial portfolio.”
Landon Wyatt III, Founding Partner of Childress Klein, added, “This is a key step in the evolution of CK’s industrial business. This strategic partnership with INDUS allows us to leverage the strength of our current operating portfolio, while our existing land inventory gives us the ability to double our existing industrial portfolio. Developing best-in-class industrial projects is what our industrial team excels at, and our partnership with INDUS positions us well for further long-term success and growth.”
Eastdil Secured represented Childress Klein in arranging the transaction.
About INDUS Realty Trust, Inc.
INDUS is a real estate business principally engaged in developing, acquiring, managing, and leasing industrial properties. As of December 2024, INDUS owns or has majority ownership in properties and projects under development aggregating 13.6 million square feet. INDUS’ properties are located in North Carolina, South Carolina, Connecticut, Pennsylvania, Florida, Georgia, Arizona and Tennessee. INDUS is owned by affiliates of Centerbridge Partners, L.P., a global private investment firm with deep experience in real estate, and GIC, a global institutional investor. Additionally, a wholly owned subsidiary of the Abu Dhabi Investment Authority is a strategic investor alongside Centerbridge in the ownership of INDUS.
About Childress Klein
As one of the largest private, full-service real estate companies in the Southeastern US, Childress Klein has developed more than 57.2 million square feet of commercial real estate across multiple sectors, including industrial, office, retail, multifamily, and self-storage, and owns assets valued at more than $3.5 billion. Childress Klein is the largest owner of industrial real estate in the Carolinas, having developed more than 25 million square feet of industrial projects. Childress Klein develops, leases, and manages industrial projects in the Southeast for its own account and maintains an inventory of 1,000 + acres of land for future industrial development.
Contact:
Nicole Yeh
(212)-218-7916