LOS ANGELES, DALLAS, CHICAGO AND WASHINGTON, D.C. — Boston-based investment management firm TA Realty, acting on behalf of The Realty Associates Fund IX LP, has sold a 45-property industrial and office portfolio for $854.5 million to Brookfield-managed real estate funds.
The industrial and office properties in the portfolio total 8.6 million square feet across 12 states. The majority of the properties are leased to investment-grade tenants in Los Angeles, Dallas, Chicago and Washington, D.C. The full list of properties was not released.
The Realty Associates Fund IX LP is a commingled fund with $1.49 billion in equity capital.
According to CoStar Group, among the Brookfield funds reported to be the buyers is its core real estate investment fund, Brookfield Premier Real Estate Partners, which launched last November. By the end of 2016, Brookfield had raised more than $1 billion for the fund.
TA Realty is still pursuing sales of the fund’s remaining assets through individual and pooled transactions, according to managing partner Tom Landry.
“We believe the outcome of this transaction represents an attractive risk-adjusted return on invested capital, and we look forward to distributing the proceeds to our investors,” says Landry.
JLL represented TA Realty in the transaction. Nicole Dutra Grinnell, Michael Haggert, Jim Raisides and Luke Marchand of TA Realty were the parties involved in the negotiations.
— Taylor Williams