Key Takeaways
- • Black Creek Industrial REIT IV, managed by Ares Management, closed a $920 million acquisition of 48 industrial properties totaling 8.3 million square feet from Prologis affiliates across 13 U.S. markets.
- • The portfolio consists of Class A and B industrial assets with 96.4% occupancy, positioned in supply-chain-critical markets benefiting from sustained e-commerce demand growth.
- • The transaction follows Ares' July 1, 2021 acquisition of Denver-based Black Creek Group's U.S. real estate investment advisory and distribution business, expanding Ares' industrial sector capabilities.
- • The deal underscores institutional investor appetite for core/core-plus industrial real estate strategies in markets serving regional and national logistics networks.
Summary
Ares Management Corporation's Black Creek Industrial REIT IV has successfully closed a $920 million acquisition of a 48-property industrial portfolio from Prologis affiliates, marking a significant transaction in the core industrial real estate sector. The properties span 8.3 million square feet across 13 U.S. markets and maintain a robust 96.4% occupancy rate, with holdings concentrated in Class A and B industrial assets.
The portfolio's strategic positioning reflects deliberate market selection focused on supply-chain infrastructure. According to Raj Dhanda, partner and global chief operating officer of the Ares Real Estate Group, the properties are "located in markets that are essential in linking national and regional supply chains," a positioning the firm views as critical given accelerating e-commerce dynamics. The transaction reinforces institutional capital's confidence in industrial real estate as a defensive, fundamentally driven asset class backed by secular demand tailwinds.
The acquisition carries particular strategic significance given Ares' management transition. On July 1, 2021—just two weeks prior to closing this transaction—Ares assumed management of Black Creek Industrial REIT IV following its acquisition of Denver-based Black Creek Group's U.S. real estate investment advisory and distribution business. David Roth, partner and head of U.S. Real Estate Private Equity at Ares, emphasized that Black Creek Group's established track record as a "trusted buyer, owner and operator" in core/core-plus industrial strategies made the acquisition strategically attractive and positioned Ares to "continue to expand" its capabilities within the commercial real estate industrial vertical. The deal demonstrates how platform acquisitions can immediately facilitate capital deployment while leveraging established sourcing relationships and sector expertise.
The portfolio's strategic positioning reflects deliberate market selection focused on supply-chain infrastructure. According to Raj Dhanda, partner and global chief operating officer of the Ares Real Estate Group, the properties are "located in markets that are essential in linking national and regional supply chains," a positioning the firm views as critical given accelerating e-commerce dynamics. The transaction reinforces institutional capital's confidence in industrial real estate as a defensive, fundamentally driven asset class backed by secular demand tailwinds.
The acquisition carries particular strategic significance given Ares' management transition. On July 1, 2021—just two weeks prior to closing this transaction—Ares assumed management of Black Creek Industrial REIT IV following its acquisition of Denver-based Black Creek Group's U.S. real estate investment advisory and distribution business. David Roth, partner and head of U.S. Real Estate Private Equity at Ares, emphasized that Black Creek Group's established track record as a "trusted buyer, owner and operator" in core/core-plus industrial strategies made the acquisition strategically attractive and positioned Ares to "continue to expand" its capabilities within the commercial real estate industrial vertical. The deal demonstrates how platform acquisitions can immediately facilitate capital deployment while leveraging established sourcing relationships and sector expertise.
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