Alpaca Real Estate (ARE) has initiated a $250 million industrial strategy centered on infill logistics properties in high-growth markets across the Southeast and Southwest U.S.
The portfolio starts with two Nashville assets, acquired through a partnership with LRC Properties. These 500,000-square-foot properties are leased below market rates to creditworthy tenants, situated in Nashville’s high-demand Southeast region with approximately 3% vacancy.
They provide convenient access to I-24, Route 41, and Jefferson Pike and are close to manufacturing centers like Nissan’s 6.5 million-square-foot plant, enabling them to capitalize on manufacturing onshoring.
KEY QUOTES:
“This transaction exemplifies our infill industrial strategy, which prioritizes assets in high-growth markets with diverse employment and low cost of labor, where we can leverage our operational and repositioning expertise to create value. Infill logistics assets make up the largest component of the U.S. industrial market, supported by strong demand drivers including e-commerce; onshoring and nearshoring; and long-term supply constraints fueled by limited land availability and high construction costs. These tailwinds stand to remain in place as potential trade policy impacts take hold.”
Peter Weiss, Managing Partner of Alpaca Real Estate
“We are excited to partner with Alpaca Real Estate and to continue our strong history investing in logistics assets in Nashville. Nashville has been a tremendously successful market for LRC driven by resilient demand, a great labor pool and continued rent growth throughout multiple cycles.”
Howard Lavitt, Managing Partner of LRC
