Elion Partners, a real estate investment firm, today announced that it has acquired four last-mile industrial distribution assets located across the West Coast for a total of $83 million. The firm plans to continue to pursue an investment strategy focused on first, middle and last-mile logistics real estate, targeting core, urban logistics hubs near large population centers in infill coastal markets.
This milestone acquisition is another in a series of acquisitions the firm has planned for its last-mile portfolio aggregation strategy across key logistics markets, including Seattle, San Francisco and Southern California. The acquisitions comprise of 425,000 square feet spread across Vista, Union City, and San Diego, California, and Everett, Washington. Elion’s investment vehicles hold an existing portfolio of last-mile logistics real estate. (ed. note: The Union City property is located at 33401 Central Ave., and Elion Partners paid $23 million for a 94,976-square-foot ($242 per square foot), fully leased industrial building.)
“The assets complement our last-mile portfolio well with characteristics prudent to logistics real estate such as clear height and turning radius,” said Shlomo Khoudari, Managing Partner at Elion. “With the addition of these assets, we expand our footprint in important locations across the West Coast and benefit from immediate operational cost-saving efficiencies.”
The firm announced its expansion to the West Coast in April with the addition of James Lambert as its Senior Managing Director of Industrial Investments. Lambert joined the firm from Amazon Logistics and is heading its acquisitions in the region. In September, the firm acquired a 110,663-square-foot last-mile industrial distribution asset located at 1111 Pioneer Way in El Cajon, California, a submarket 15 miles east of central San Diego.
“Accelerated e-commerce adaptation combined with the need for supply chain resiliency and diversification have been the primary demand drivers for the asset class,” said Lambert. “As retailers and manufacturers increase their level of safety inventory and look to diversify their supply chains, strategically located distribution centers will be vital to their success. We look forward to acting on our pipeline of opportunities and continuing the expansion of Elion’s logistics portfolio across our identified markets.”
Earlier this summer, Elion sold a portfolio of 12 last-mile distribution assets representing 700,000 square feet in South Florida. The firm aggregated the portfolio through one-off off-market transactions throughout 2018 and 2019. As a vertically integrated firm, Elion owns and operates logistics assets in closed-end fund structures and permanent capital vehicles.
About Elion Partners
Elion Partners is a real estate investment firm and minority-owned registered investment adviser. As a vertically integrated platform, Elion is both a fiduciary and operator, managing more than $1.6 billion in real estate assets through closed-end funds and permanent capital investment vehicles. Since its founding in 2010, principals of Elion invest personal capital in each of the firm’s funds to ensure the utmost alignment of interests and transparency with its partners. http://elionpartners.com/