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Guggenheim commits $600M to new e-commerce venture with ElmTree

Guggenheim Investments has committed $600 million to a new fund with private equity partner ElmTree Funds focused on investing in industrial e-commerce assets throughout the United States.

As part of the transaction, ElmTree, which specializes in acquiring build-to-suit properties net leased to investment grade tenants, will invest in industrial real estate assets tied to the e-commerce, last-mile, and logistics sectors.

These assets are in high demand as more corporations aim to efficiently build out supply chains to incorporate faster delivery times as a result of consumer demand.

“We are thrilled to match our expertise in the industrial real estate sector with a quality investment partner like Guggenheim,” said James Koman, CEO and Founder of ElmTree. “This strategic partnership provides fresh capital to continue investing in mission critical assets that are in high demand across the country, while generating steady, long-term cash flow.”

Jennifer Marler, Senior Managing Director and Head of Real Estate at Guggenheim Investments added, “Guggenheim Investments is pleased to partner with ElmTree on another transaction that benefits our clients and the stakeholders of the real estate projects. In these challenging times, we will continue to create innovative opportunities like this to drive value for our clients.”

The COVID-19 pandemic has accelerated both the growth and adoption rates of e-commerce in the US. With sales expected to hit $1.25 trillion by 2025, JLL predicts demand for warehouse and distribution space to reach over one billion square feet by then.

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