GCP Sells 47-Property, 11.6 MSF Southeastern Industrial Portfolio for $800M
BIRMINGHAM, ALA. — GCP has sold its Fund I portfolio, which consists of 47 industrial properties totaling 11.6 million square feet, to an undisclosed group of institutional investors for $800 million.
The portfolio consists of 11 properties in Alabama totaling 2.9 million square feet; 13 properties in Georgia totaling 2.9 million square feet; seven properties in Florida totaling 2.3 million square feet; seven properties in North Carolina totaling 1.9 million square feet; and nine properties in South Carolina totaling 1.6 million square feet. The properties were 98 percent occupied at the time of sale.
John Huguenard of JLL’s Chicago office brokered the transaction on behalf of GCP. “This transaction highlights the investment community’s laser focus on acquiring institutional-quality industrial product from operators in growth markets as a defensive play in response to the changing landscape brought on by the COVID-19 pandemic,” says Huguenard.
GCP was under contract to sell its Fund I portfolio prior to the start of the pandemic, but the initial buyer elected not to proceed due to the potential impact of COVID-19 on the industrial market.
“In August, GCP was approached by several institutional investors who ultimately made unsolicited offers to acquire the Fund I portfolio,” says Gardner Lee, co-founder of GCP. “After several weeks of negotiation, the initial setback proved beneficial to the company, as our rent collection record combined with an increase in net operating income from new leases signed during COVID resulted in GCP being able to sell the portfolio for a materially higher price than would have been achieved in the initial transaction.”
Founded in 2013, Birmingham, Ala.-based GCP is an operator, developer and manager of industrial properties within the U.S. Sunbelt markets.
— Katie Sloan