KKR Expands Real Estate Industrial Portfolio in the Lehigh Valley with a New Acquisition
NEW YORK–(BUSINESS WIRE) – KKR, a leading global investment firm, today announced the acquisition of a two-building industrial sales campus in Allentown, Pennsylvania. KKR acquired the industrial campus as part of its core plus real estate strategy from GLP Capital Partners (GCP).
The two buildings were completed in 2019 and 2020 and feature the latest in design and specifications, including 36 feet headroom, 190 foot truck dishes, and large cargo areas. When they were acquired, 100% of the buildings were rented to a high-quality tenant on a long-term basis. Both tenants and previous owners have invested significant capital in the campus.
The property is strategically located in the heart of the Lehigh Valley, adjacent to Interstate Highway I-78, and provides access to major east coast metropolitan areas. New York, Washington DC and Philadelphia are all within a one to three hour drive. The acquisition brings KKR’s commercial real estate presence in Pennsylvania to just over 3 million square feet.
“We are excited to add this high quality asset to our portfolio in one of the top retail markets in the country,” said Ben Brudney, director of the Real Estate Group at KKR, who oversees the company’s US industrial investments. “We believe that state-of-the-art distribution centers in busy locations with high demand and barriers to new supply will continue to benefit from the acceleration of e-commerce penetration.”
Through its funds, KKR has acquired approximately 47 million square feet of industrial property in strategic locations in key metropolitan areas in the United States and now has approximately 32 million square feet in assets. Since launching a dedicated real estate platform in 2011, KKR has increased real estate assets under management in the USA, Europe and Asia to around 36 billion US dollars as of September 30, 2021. The global real estate team consists of over 135 dedicated investment professionals from both the equity and credit businesses.
CBRE National Partners brokered the transaction on behalf of the seller.
About KKR
KKR is a leading global investment firm that works with strategic partners who manage hedge funds to manage multiple alternative asset classes, including private equity, credit and real assets. KKR strives to generate attractive investment returns for its fund investors by adopting a patient and disciplined investment approach, employing world class people, and driving growth and value creation with KKR portfolio companies. In addition to the capital managed for fund investors, KKR also invests its own capital and offers financing solutions and investment opportunities through the capital market business. References to KKR’s investments may include the activities of its sponsored funds. For more information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.