USAA Real Estate Company Sells 10.6 Million-Square-Foot U.S. Supply Chain Class "A" Industrial Portfolio
Portfolio Includes Industrial Space Located in Core U.S. Supply Chain Markets - Columbus, Memphis, Nashville, Sacramento
January 12, 2007 - Dallas, TX
On behalf of its fellow investors in US Industrial REIT, USAA Real Estate Company is pleased to announce the sale of its 10.6 million square foot U.S. Supply Chain Class "A" Industrial Portfolio which includes 23 industrial buildings located in Columbus, Memphis, Nashville and Sacramento, to StratREAL, an independent global real estate investment advisory and asset management business based in London.
USAA Real Estate Company, a leading provider of co-investment funds and development services of various industrial, office, and retail projects throughout the country for corporate and institutional investors, was represented by CB Richard Ellis' Jack Fraker, vice chairman; Randy Baird, executive vice president; and John Robinson, senior vice president. StratREAL was represented by Carter & Associates' John Carter based in Tampa, Florida.
"With a 94% combined occupancy rate and being strategically located in four excellent U.S. industrial supply chain markets, this was a win-win for any buyer," says T Patrick Duncan, President and CEO of USAA Real Estate Company. "Each of these key industrial markets, Columbus, Memphis, Nashville and Sacramento, benefits from favorable business climates and/or serves as critical national and regional distribution hubs within the U.S."
U.S. Supply Chain Class "A" Industrial Portfolio consists of the following building spaces:
- Columbus Portfolio: 11 buildings; 4,405,359 square feet; 96% leased
- Memphis Portfolio: 8 buildings; 4,164,708 square feet; 89% leased
- Nashville Portfolio: 1 building; 770,000 square feet; 100% leased
- Sacramento Portfolio: 3 buildings; 1,227,073 square feet; 98% leased
Pierre Rolin, Chairman of StratREAL says, "While we have traditionally invested in office assets, we found this to be the perfect opportunity to enter into the enormous growth happening within the United States' distribution hubs and to expand our geographic and sector diversity of offices, residential and retail. We plan to carry on the excellent maintenance of these facilities, as USAA has done previously, and further tenant expansions."
"Working on the U.S. Supply Chain Portfolio has been a career assignment for our team," says Fraker. "Not only is the portfolio Class "A" in every regard, but the assignment provided us with the opportunity to build on our already great relationship with USAA. We have been working with their experienced team for years as they systematically acquired properties for this portfolio, so it is very satisfying to be there when the original vision for the portfolio is accomplished. An additional benefit for CBRE on this project is that we developed a new relationship with StratREAL and Carter Associates. We look forward to working with them again."
About USAA Real Estate Company
USAA Real Estate Company has more than $3 billion of assets under management and provides co-investment, acquisition, build-to-suit and development services for corporate and institutional investors. The USAA portfolio consists of office, industrial, retail and hotel properties as well as investments in real estate operating companies with an annual volume of transactions in excess of $1billion. USAA Real Estate is a subsidiary of USAA, which has been serving military families since 1922 and has become one of America's leading financial services companies. The association, well known for its exceptional service, offers its 5.6 million members a comprehensive range of insurance, banking and investment products and services designed to help them meet their financial needs. Headquartered in San Antonio, Texas, with offices throughout the United States and Europe, USAA owns or manages assets of more than $100 billion.
About StratREAL
StratREAL is an independent global real estate investment advisory and asset management business. StratREAL devises personalised investment strategies, delivering off-market investments for owners and managers of substantial private wealth, and acts as a consultant to family offices and private investment banks. StratREAL also acts as special property advisor to private customised real estate funds.
Since 1998, StratREAL has conducted $7 billion of transactions for its clients with total returns achieved between 11% and 40% IRR after fees. The company currently oversees the management of more than $5.7 billion of real estate assets. StratREAL is headquartered in London, with representative offices in Zurich, Madrid, New York, and Los Angeles. Please visit the website at www.stratreal.com.