J.P. Morgan Asset Management's nontraded REIT has expanded its southern U.S. industrial holdings.
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J.P. Morgan Real Estate Income Trust acquired two logistics warehouse portfolios in Virginia, Florida and Texas for $124M, according to a news release.
"The industrial asset class continues to be a foundation for economic growth, driven by robust tenant demand and evolving logistics needs," JPMREIT CEO Chad Tredway said in a statement. "We remain committed to delivering value to our investors through thoughtful acquisitions and a focus on long-term growth opportunities in the industrial sector."
The acquisitions include a 95% interest in a joint venture with B&D Holdings for seven infill warehouse and industrial properties in Norfolk, Virginia, and Florida's "Space Coast." That portfolio spans 581K SF and is 100% leased to 16 tenants.
The other portfolio it acquired consists of eight buildings in the Dallas metropolitan area. The 454K SF portfolio is 99% occupied by 15 tenants.
J.P. Morgan Asset Management launched the nontraded REIT in the summer of 2022 — after Blackstone and Starwood led the way with similar investment vehicles but before they faced issues with redemption requests. It focuses on buying stabilized real estate assets and some redevelopment opportunities as well as real estate-related securities.
The REIT has 12 investments in its portfolio with a total assessed value of $956M. As of March 31, more than 60% of its holdings were residential properties, and 68% of its portfolio was in the southern U.S.
In March, JPMREIT purchased the 133-unit Bass Lofts in Atlanta for $34.8M.
Last year, it purchased a three-building industrial portfolio in Florida for $25.8M. The REIT also closed on a $62.4M mortgage in August for the acquisition of a 297-unit multifamily property in Charleston, South Carolina, in partnership with Raith Capital Partners.
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