New York & Tri-State CRE News In Your Inbox.

Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.

Sub Markets

Property Sectors

Topics

New York & Tri-State  + Midtown New York  | 
KKR is expanding into ground-up industrial development through its wholly owned Alpha Industrial Properties arm

KKR in Major Industrial Property Push, Eight Projects in Development for 1.8M SF Nationwide

Private equity pioneer KKR is undergoing a major expansion of its  industrial real estate investment strategy in the U.S. to include ground-up development of Class A industrial logistics properties, as well as an aggressive acquisition strategy.  

KKR’s wholly owned U.S. industrial real estate platform, Alpha Industrial Properties (AIP), has begun development at four sites and has another four sites in pre-development.

KKR has appointed industry veterans Greg Bradley and Matt Singleton as Senior Vice Presidents at AIP responsible for managing the platform’s sourcing, pre-development and development activity.

The eight projects are expected to deliver 1.8 million square feet of industrial space serving the Atlanta, Dallas, Denver and Orlando markets. Funding for the projects is being provided by KKR Real Estate Partners Americas III, KKR’s Americas opportunistic equity real estate fund.

The development program augments KKR’s strategy of acquiring industrial assets and portfolios in major U.S. markets that are experiencing outsized demand for logistics real estate driven by demographic trends and the proliferation of ecommerce. Across its funds, KKR has committed or acquired approximately $7 billion of U.S. logistics assets since 2018 and currently owns over 45 million sf of industrial real estate.

“The addition of ground-up development capabilities enhance our ability to assemble diversified portfolios of high quality industrial real estate and increase our presence in growth markets where we believe the supply-demand fundamentals remain dynamic,” said Ben Brudney, a Director in the Real Estate group at KKR who oversees the firm’s industrial investments in the U.S. 

“Our extensive experience acquiring approximately $7 billion of industrial real estate in the U.S. over the last four years positions us to identify attractive opportunities and development is a natural extension of our strategy.”

Square Mile Capital and BMO Harris Bank have provided KKR with a $200 million construction facility to finance its investments in industrial developments nationwide.

Connect

Inside The Story

KKR

About Ted Jackson

A highly successful financial journalist, corporate financial writer and magazine entrepreneur with strong expertise in writing on fixed income and pass-through securities (ABS), finance and banking, the economy, economic developments, financial markets, investing and personal finance, the business of behavioral healthcare and more.

  • ◦Development
  • ◦Financing
Money360-09-cube
New call-to-action
New call-to-action
New call-to-action