KKR Acquires Two Amazon-Occupied Distribution Centers Near Milwaukee, Charlotte for $260M
KENOSHA, WIS. AND KANNAPOLIS, N.C. — KKR (NYSE: KKR), a global investment firm based in New York City, has acquired two e-commerce distribution centers totaling approximately 2.5 million square feet for $260 million.
One of the properties is located in Kenosha, approximately 30 miles south of Milwaukee. The other is in Kannapolis, approximately 25 miles northeast of Charlotte. In a release, KKR said that the properties were both 100 percent leased to a “high-quality, investment-grade tenant on a long-term basis.” Multiple news outlets, including both the Milwaukee Business Journal and the Charlotte Business Journal, report that Amazon is the occupant of both facilities.
Regarding the Wisconsin facility, KKR acquired the 1.5 million-square-foot complex for $176 million, or $115 per square foot, according to the Milwaukee Business Journal. Prologis sold the two-building property, which is located off Interstate 94.
The 1 million-square-foot facility in North Carolina is known as CLT 3 and sold for $84 million. The seller was not disclosed.
“The current environment will lead to continued acceleration of e-commerce penetration which drives demand for large, modern distribution centers like the ones we are acquiring,” says Roger Morales, partner and head of Americas acquisitions at KKR. “Logistics real estate represents a growth opportunity as more and more U.S. consumers migrate to shopping online.”
Following this transaction, KKR owns approximately 12 million square feet of industrial real estate across the United States. The company’s stock price opened at $31.93 per share on Monday, July 6, up from $25.40 per share a year ago.
— Taylor Williams