CenterPoint Acquires $1.7B in ’21, Vows to Remain Aggressive
Posted By Staff Writers On January 12, 2022 @ 11:33 am
OAK BROOK, IL – Executives at CenterPoint Properties are bullish on their prospects to sustain the company’s record-setting investment clip after notching 30 new investments in 2021. One of the nation’s most ambitious industrial real estate firms invested more than $1.7 billion to acquire 35 properties in six of its target markets coast-to-coast: Southern California, New York/New Jersey, Oakland, Miami, Texas, and Savannah. CenterPoint added more than 5.5 million square feet and almost 400 acres to a portfolio that now stands at 66.4 million square feet and 312 buildings nationwide.
The company significantly bested its investment record of more than $1 billion in 2020 in the country’s top infill, port and e-commerce markets. Much of that 70 percent increase came largely from its investment teams completing six transactions that surpassed $100 million apiece.
Three of those acquisitions were in the South Bay submarket in Southern California, where CenterPoint closed a staggering 13 deals. Despite recent success, the company’s Senior Vice President of Investments for the West Region Evan Lippow said his team is not satisfied and remains steadfast in its pursuit of quality infill properties near the nation’s leading ports at Los Angeles and Long Beach.
“Over the past 18 months, we’ve assembled a top-flight team from the ground-up to identify and seize opportunities in the L.A. Basin, and their hard work shows in our results in the region’s most competitive submarkets,” Lippow said. “Additionally, CenterPoint remains committed to expanding its portfolio in the infill submarkets of both the Bay Area and Seattle/Tacoma markets, with the ability to close even the most complex and competitive transactions,” Lippow added.
After making a splash by acquiring three last-mile facilities in its first-ever acquisition in the New York City boroughs in 2020, CenterPoint added a pair of adjacent properties in the Bronx and another in Brooklyn in 2021. The company purchased four properties – including three in the enviable Exit 8A submarket – to fortify its Northern New Jersey portfolio, and added three in Miami. CenterPoint also expanded its New York/New Jersey footprint into Lehigh Valley, PA, for the first time with the acquisition of a trophy, core million-square-foot distribution center.
“We expect the Class A purchase we made in Pennsylvania to be the first of many there, and we’re scouring the most advantageous areas of New Jersey, inside the New York metro, and the best submarkets in South Florida, Charleston and Savannah for deals that fit our strategic mantra: ports, population and parking,” said PJ Charlton, Senior Vice President of Investments in CenterPoint’s East Region. “CenterPoint’s leadership has been passionate about buying large infill properties in the best markets in the country for over a decade. Investment teams had outdoor storage and parking in mind well before it became a common tenant requirement. We’ve carefully cultivated a top market, infill portfolio with those attributes and are well-positioned to serve the needs of the retailers and logistics companies that want to be close to the consumer and close to the major ports and need extra parking capabilities,” Charlton continued.
CenterPoint’s Central Region Investments Team, led by Senior Vice President Rives Nolen, expanded into Austin for the first time, purchased its second-ever holding in Dallas and bought a Class A in Houston to add to the more than five million square feet of space it owns in that market.
“Houston has been our Texas home base for most of the past decade, and we’re excited to have boots on the ground now in Dallas-Fort Worth, too, as we look to gain traction there and in other emerging industrial markets like Austin,” said Nolen. “The business climate in Texas is ripe for even more growth than the healthy upswing we’ve seen in recent years, so the time is right for CenterPoint to expand into e-commerce and logistics hotbeds beyond Houston,” Nolen concluded.
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About CenterPoint Properties
CenterPoint is an industrial real estate company made up of dedicated thinkers, innovators and leaders with the creativity and know-how to tackle the industry’s toughest challenges. And it’s those kinds of problems—the delicate, the complex, the seemingly-impossible—that we relish most. Because with an agile team, substantial access to capital and industry-leading expertise, those are exactly the kinds of problems we’re built to solve. For more information on CenterPoint Properties, visit centerpoint.com, follow @CenterPointProp on Twitter or engage with us on LinkedIn.