Rise Of E-Commerce Prompts PGIM To Buy Industrial Portfolio For $425M
The real estate firm paid $425M for a 15-building industrial portfolio made up of 4.7M SF of assets in Atlanta, Dallas, Fort Worth and Phoenix.
PGIM targeted properties in key U.S. distribution markets as the nation continues to see more retailers and corporations invest in e-commerce and last-mile services, all of which require strategic hubs for shipping goods to consumers.
“The COVID-19 pandemic has not only supported the continued rise of e-commerce and distribution demand across the U.S., but it has significantly accelerated the existing trend," PGIM Real Estate Global Chief Operating Officer and head of U.S. Equity Cathy Marcus said in a statement.
"As many more retailers and international corporations enter the U.S. industrial market or expand their presence in the sector, these state-of-the-art properties will be an attractive component of our broader industrial portfolio."
PGIM says the assets bought are new and designed with enough flexibility to accommodate today's tenants.