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Debt & Equity

Prudential antes up $185M for Realco portfolio recap

USAA Real Estate Company (Realco) announced the recapitalization of an industrial portfolio consisting of 25 bulk assets located across 11 states.

The transaction entailed the acquisition by new investors of interests in the portfolio held by the original investors. The acquisition price was established by a competitive bidding process.

An affiliate of RealCo will retain an approximately 10 percent ownership stake in the recapitalized portfolio while RealCo itself will serve in an advisory capacity.

Realco has recapitalized anananaa
Realco has recapitalized an industrial portfolio

As part of the recapitalization, $185 million in new debt financing was arranged on the portfolio with Prudential and is secured by 10 unencumbered assets which together comprise 5.9 million square feet.

In total, the portfolio consists of 14,175,572 s/f of core and value add bulk industrial real estate as well as two excess land parcels comprising 73.8 acres. The properties, which have a median age of nine years, are located in California, Florida, Georgia, Illinois, Indiana, Kentucky, Missouri, New Jersey, Pennsylvania, Tennessee, and Texas.

“This is an exemplary transaction for RealCo — one of the most important and successful in our history — as it encapsulates our dedication to and excellence in creating value for our investors,” said Len O’Donnell, president & CEO of USAA RealCo.  “With its collection of young, state-of-the-art, well-balanced, assets, this is one of the country’s largest and highest quality industrial portfolios.

LEN O'DONNELL
LEN O’DONNELL

“By adhering to our disciplined investment approach, we delivered extraordinary results for our investors while satisfying the market’s strong demand for high caliber industrial assets.”

USAA Real Estate Company was advised by Dallas-based CBRE National Partners on the recapitalization of the portfolio.

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