KKR Expands Industrial Real Estate Footprint in Atlanta with Acquisition by KREST
NEW YORK–(COMMERCIAL THREAD) – KKR, a leading global investment firm, today announced that KKR Real Estate Select Trust Inc. (“KREST”) has acquired a 1.1 million square foot Class A industrial warehouse in Southern Gateway at Lambert Farms in Atlanta (McDonough), Georgia of the PNK Group, an international real estate developer implementing full cycle industrial projects.
Completed in 2020, the warehouse is centrally located in the Atlanta logistics corridor with convenient access to the airport, Port of Savannah, and downtown and downtown Atlanta. The state-of-the-art structure has a clearance height of 40 feet and two 190-foot truck lots. The property is 100% triple net leased to two high quality tenants, a leading publicly traded mattress company and a logistics and supply chain company, with a weighted average lease term of around 10 years .
“Today’s acquisition represents another important milestone for KKR as we continue to develop and diversify our industrial footprint and our KREST portfolio,” said Ben Brudney, Director of the Real Estate group at KKR who oversees industrial investments of the company. “We continue to view Atlanta as a long-term demographic winner with very attractive market fundamentals and believe that accelerating e-commerce growth will drive demand for high quality, strategically located fulfillment centers. ”
The investment is part of KREST’s stabilized real estate investment strategy, one of the fund’s three main investment strategies, which focuses on well-leased and income-generating industrial and multi-family opportunities. The property is the fourth industrial asset in KREST’s portfolio, which owns more than 2.5 million square feet of logistics real estate in attractive high growth markets including Portland, Oregon, Memphis, Tennessee, Raleigh, North Carolina and now Atlanta, Georgia.
Since launching a dedicated real estate platform in 2011, KKR has grown its real estate assets under management to approximately $ 32 billion in the United States, Europe and Asia as of June 30, 2021. KKR’s global real estate team consists of approximately 130 dedicated investment professionals, covering both equity and credit activities, in twelve offices and nine countries.
JLL negotiated the sale on behalf of the PNK Group.
KKR Real Estate Select Trust Inc. (“KREST”) is a continuous, registered closed-end fund that invests thematically in high quality, stabilized, income-oriented commercial real estate capital and debt. The fund is open to all investors with daily subscriptions and its primary investment objective is to provide an attractive current income, with a secondary objective of long term capital appreciation. KREST is managed by KKR Registered Advisor LLC, a subsidiary of KKR & Co. Inc., and utilizes the experience and reach of KKR’s global real estate team and the resources available through the KKR platform. For more information about KREST, please visit its website at www.krest.reit.
KKR is a leading global investment firm providing alternative asset management, capital markets and insurance solutions. KKR aims to generate attractive returns on investment by following a patient and disciplined approach to investing, employing world-class people and supporting the growth of its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer pension, life and reinsurance products under the leadership of The Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For more information on KKR & Co. Inc. (NYSE: KKR), please visit the KKR website at www.kkr.com and on Twitter @KKR_Co.
About the PNK group
PNK Group is an international real estate developer implementing full cycle industrial projects. The group of companies was founded in 2004. The PNK group has 37 logistics and industrial parks, including three industrial parks in the United States located in Atlanta, GA, Savannah, GA and Hazleton, PA. Outside of the United States, the company operates four in-house factories that produce the major load-bearing structural components of buildings. The company uses leading German modular construction technology to assemble large prefabricated components and units. The PNK Group builds industrial facilities in accordance with international FM Global standards. For more information, please visit www.pnk.group.