Dalfen Industrial & RGA partner up in ownership of two multi-tenant industrial projects totaling 253,055 square feet in key Southwest and Southeast U.S. industrial markets

PHOENIX/ATLANTA – June 3, 2024 – Cushman & Wakefield announced the firm’s National Industrial Advisory Group (“IAG”) has advised Dalfen Industrial in the disposition and recapitalization of a multi-tenant industrial portfolio totaling 253,055 square feet across two projects in the Phoenix and Atlanta metro markets. The projects consist of the Gilbert Distribution Center, a single Class A multi-tenant industrial building in Gilbert, AZ situated within Phoenix’s sought-after Southeast Valley submarket and a North Atlanta Infill Portfolio comprising four multi-tenant buildings in Atlanta’s densely developed and fully built-out I-85 North and GA 400 submarkets.

The dual-project portfolio was owned in Dalfen Industrial’s Value-Add Fund IV and was recapitalized in a joint venture between Dalfen Industrial and RGA ReCap Incorporated (ReCap Real Estate Investments) on behalf of Reinsurance Group of America, Incorporated (RGA).

Cushman & Wakefield’s Will Strong, Michael Matchett, Molly Hunt, and Dean Wiley based in Phoenix and of the firm’s national IAG-Mountain West together with Stewart Calhoun, Casey Masters, Ryan Bellows, and Drew Stanford based in Atlanta and of the firm’s IAG-Southeast represented the seller in the transaction. Dalfen Industrial is one of the nation’s largest owners of industrial real estate, focused on high-quality industrial properties in key markets throughout the U.S. and Canada.

“This multi-market portfolio comprises two high-quality distribution and light industrial projects strategically positioned in two major dynamic logistics/distribution markets, each with excellent tenancy, convenient accessibility, and proximity to demand drivers and labor,” said Will Strong, Executive Vice Chair. “Dalfen Industrial did a phenomenal job in maintaining the condition and occupancy of these facilities, while RGA/Dalfen venture, has acquired an exceptional value-add industrial asset(s) with stabilized cash flow plus a mark-to-market opportunity potentially providing additional significant upside.”

“Atlanta industrial properties continue to have an appeal from investors and users nationwide, and this project is no different. The North Atlanta Infill Portfolio is situated in the densely developed and fully built-out I-85 North and GA 400 submarkets which have been experiencing increased tenant demand, tight vacancies, and high barriers to entry,” said Stewart Calhoun, Vice Chair.

“This transaction demonstrates the ability of Cushman & Wakefield’s National Industrial Advisory Group and our collaborative approach to execute seamlessly for our clients on multi-market sales for any industrial product type anywhere in the U.S.,” added Strong.

Gilbert Distribution Center is a freestanding state-of-the-art Class A industrial building positioned in an infill location at 1495 East Baseline Road, in the heart of Phoenix’s sought-after Southeast Valley. The property is 100% leased to two tenants. The property’s key features include its multiple points of ingress/egress, multiple storefronts, excellent loading, functional column spacing, heavy parking, and concrete truck aprons on a 140’ truck court. The property is located within minutes of U.S. Route 60 and near Loop 101 and Loop 202, providing immediate access to the surrounding metropolitan area.

The North Atlanta Infill Portfolio is a collection of four multi-tenant rear-load light industrial buildings located at 6205 & 6215 Shiloh Crossing, 2915 Courtyards Drive, and 3055 Northwoods Circle. The properties are a combined 86% leased to eight tenants, three of which recently extended their lease terms. Key features of the buildings include 18’-22’ clear heights, rear loading, a mix of both drive in and dock high doors, and multiple glass store fronts. Each asset is located within minutes of at least one major interstate or state highway, providing great access to Atlanta’s rapidly growing population.

Source: Cushman & Wakefield