DALLAS, TEXAS — Cobalt Capital Partners has sold a portfolio of 256 primarily light industrial assets for $1.6 billion to Colony Financial Inc. In addition to the portfolio sale, Cobalt’s management team, led by Lewis Friedland, has joined Colony to run the day-to-day operations of the business, including investments, asset and property management.
The 256-property portfolio is leased to more than 600 tenants and comprises over 30 million square feet across 16 major U.S. markets, including Atlanta, Dallas and Chicago.
“We’re pleased to have executed this sale on behalf of our investor partners, including our long-time partner USAA Real Estate Co.,” says Friedland, former managing partner of Cobalt Capital Partners. “Our entire team has done an excellent job over the last 10 years building this business into a leader in the industrial sector. We’re excited to be joining Colony, one of the real estate industry’s premier companies, and look forward to continuing to grow our portfolio.”
Cobalt was represented in the transaction by an Eastdil Secured team led by Steve Silk and Jay Borzi, the CBRE National Partners team led by Jack Fraker and Chris Riley, and Gannon Gerrity Advisors, led by Kristin Gannon and Kevin Gerrity. Locke Lord served as Cobalt’s legal advisor in the sale.
“We are extremely pleased with this transaction as it represents an outstanding outcome for the investors. We are also very proud to have worked with Lew and his team in building the Cobalt platform over the last ten years. They have been great partners and they will be missed, but I know they will continue to be successful with Colony,” says Len O’Donnell, CEO of USAA Real Estate Co.
Cobalt Capital Partners, a Dallas-based private equity firm, invests in light industrial property in major metropolitan markets throughout the United States. Cobalt Industrial REIT III is a private REIT advised by Cobalt Capital Partners.
Santa Monica, Calif.-based Colony Financial is a real estate investment and finance company focused on acquiring, originating and managing a diversified portfolio of real estate-related debt and equity investments at attractive risk-adjusted returns.
— Danielle Everson