Westmount Realty Capital recapitalizes 6.1 million square foot industrial portfolio in Chicago and Milwaukee
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CHICAGO & MILWAUKEE – Westmount Realty Capital, a Dallas-based private commercial real estate firm, today announced that it is partnering with a fund managed by the real estate group of Ares Management Corporation, a global leader in property management. alternative investments, to recapitalize a 51-industrial portfolio of assets totaling 6.1 million square feet located in the established industrial submarkets of Chicago and Milwaukee. Westmount and Ares have acquired the institutional-grade portfolio of last-mile logistics, bulk distribution and industrial properties from a Partners Group Westmount joint venture.
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The portfolio consists primarily of multi-tenant, infill light industrial properties that provide sustainable functionality and long-term rental options. The majority of the portfolio is located in the Chicago MSA, and the largest group of assets is near O’Hare International Airport. The portfolio is currently 98.8% leased to a slate of 123 national and regional tenants with an attractive lease renewal profile. The top 10 tenants in the portfolio represent 42.5% of the total lettable area and no tenant represents more than 9.9% of the portfolio.
“It’s a monumental day for us, and it’s a testament to Westmount’s tenacious approach to asset management and value-added investment strategy,” said Cliff Booth, Founder and President of Westmount. “Westmount has been active in the industrial market for over 35 years, and this knowledge has helped us bring together this collection of institutional quality industrial properties. We are excited to recapitalize and reinvest in this portfolio and look forward to working with our new partner Ares as we continue to drive value in this portfolio. »
Driven by a highly connected rail and highway system, Chicago is an international trade hub for the Midwest, as well as a critical market for distribution networks. Its road network serves 9.5 million people and 30% of all US freight originates in or passes through Chicago. The city also continues to rank among the top 5 markets for net absorption of industrial space nationally.
“Portfolio property attributes – size, design and location – are difficult and costly for industrial developers to replicate, resulting in higher occupancy rates and a rental growth trajectory,” said Brant Brown, President and Chief Operating Officer of Westmount. “The combination of strong tenant demand, coupled with a limited new supply of industrial infill, should continue to drive rental growth across the portfolio over the next few years.”
Michael Caprile with CBRE and Josh McArtor with Eastdil handled the transaction on behalf of the seller.
About Capital Real Estate Westmount
Westmount Realty Capital, LLC is a Dallas-based private commercial real estate company with a proven track record of exceptional performance, with a core team in place, for over 35 years. Westmount is considered an innovative, industry-leading company and is a trusted, relationship-driven operating partner with many sources of US and foreign institutional and private capital. The firm is active in the United States, specializing in value-added and opportunistic investments, and has successfully gone through several market cycles. For more information, contact www.westmountrc.com.
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About Ares Management Corporation
Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager providing clients with complementary primary and secondary investment solutions across the asset classes of credit, private equity, real estate and infrastructure. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of September 30, 2021, Ares Management Corporation’s global platform had approximately $282 billion in assets under management, with approximately 2,000 employees operating in North America, Europe, Asia Pacific and the Middle East. For more information, please visit www.aresmgmt.com.
About the Partners Group
Partners Group is a global leader in private markets. Since 1996, the firm has invested more than $150 billion in private equity, private real estate, private debt and private infrastructure on behalf of clients worldwide. Partners Group seeks to generate strong returns by capitalizing on thematic growth trends and transforming attractive businesses and assets into market leaders. The company is an engaged and responsible investor and aims to create sustainable returns with lasting positive impact for all of its stakeholders. With over $119 billion in assets under management as of June 30, 2021, Partners Group offers an innovative range of tailored client solutions to institutional investors, sovereign wealth funds, family offices and individuals worldwide. The company employs more than 1,500 diverse professionals in 20 offices around the world and is headquartered in Baar-Zug, Switzerland; Denver, USA; and Singapore. It has been listed on the SIX Swiss Exchange since 2006 (symbol: PGHN). For more information, visit www.partnersgroup.com or follow us on LinkedIn or Twitter .
Westmount Realty Capital, LLC