Allianz Real Estate, acting on behalf of several Allianz Group companies, has provided $94 million in financing to U.S. Cities Industrial Fund (USCIF), an open-ended core fund managed by Nuveen Real Estate.
Logistics remains a key focus for Allianz Real Estate as diversification continues to play a fundamental role in the firm’s investment strategy.
The sector is being driven by strong demand from tenants, especially due to the surge of online shopping. Investors have also followed the trend and pent up demand since 2019.
The portfolio comprises six industrial/distribution assets totaling 1.45 million square feet located in three desirable logistics markets: Chicago, Denver and Los Angeles. All assets are fully leased for the long term to six diverse tenants with strong credit.
Two of the warehouses are in the Chicago area; one is in the Denver area; the three remaining warehouses are located in the Los Angeles area.
Mike Cale, Co-head of US Debt, Allianz Real Estate added: “Nuveen is a key strategic partner of Allianz Real Estate across the globe. We are excited to begin our debt relationship with them in the U.S. with the closing of this high quality, well located industrial portfolio. Given the volatility in the market, this financing for a best in class sponsor aligns well with our long term investment strategy.”
Christoph Donner, CEO of Allianz Real Estate of America, added, “The trend for logistics is one we have been following for some years.
“The current environment has not doubt provided additional opportunities – there has been an overwhelming need for industrial space and warehouses, particularly in densely populated areas around key industrial and distribution centers in the U.S. Logistics remains a growing industry as the demand for more distribution space continues to increase. At Allianz Real Estate, we are fully prepared to capitalize on that trend.”