Atlas Holdings, a real estate investment company that primarily focuses on sale-leasebacks, has launched a new venture, Atlas Properties, that will focus on assets in the industrial sector.
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The vehicle was created in December and has already acquired a portfolio of 23 industrial properties nationwide for $300M, the firm said in a press release.
With $500M in equity capital from investors and market debt financing, Atlas Properties will look to accumulate a $1B industrial portfolio.
"The formation of Atlas Properties is a natural progression of our investment strategy and fully consistent with our longstanding practice of investing in areas where our sector expertise and operating experience give us a competitive edge," Tim Fazio, Atlas co-founder and managing partner, said in the release.
Atlas isn't alone when it comes to beefing up industrial investments. Morgan Stanley said last week it is preparing to launch a nontraded REIT with manufacturing and distribution assets as a primary target. Invesco Real Estate acquired a minority stake in industrial investment firm Faropoint in November to capitalize on tailwinds in the industrial market.
High interest rates greatly slowed transactions across real estate in 2023, but many experts say the industrial sector is showing signs of stabilization. Through November in 2023, investors closed $48.6B in industrial sales, according to CommercialEdge's National Industrial Report. While this is far lower than 2022's $101.2B volume, the average sale price of an industrial asset rose 6% in 2023, increasing from $123 per SF to $130.
Industrial was the only asset class to show an increase in property values (2%) since Q2 2022, Moody's concluded in its 2024 forecast.
The Atlas parent company manages a 27-business portfolio that includes industrial, manufacturing and distribution clients. It has been investing in the industrial asset class for over 20 years.
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