News Apr 11, 2021

Arcapita Expands Logistics Platform and Acquires Major FedEx Distribution Center in Texas

  • The Class A+ distribution center is leased to FedEx Ground on a long-term basis
  • The acquisition is the latest addition to Arcapita’s United States industrial real estate portfolio
  • Arcapita’s management has managed and exited over $5.5 billion in logistics real estate globally

April 11, 2021 – Arcapita Group Holdings (“Arcapita”), the global alternative investments firm, today announced the acquisition of Cedardale Distribution Center, a Class A+ distribution facility in Dallas, Texas, leased to FedEx Ground. The property was constructed in 2018 and is an integral part of FedEx’s distribution network in the Southern United States.

The FedEx facility is the latest addition to Arcapita’s United States industrial real estate portfolio, following the recent acquisition of 16 industrial properties in Cleveland, Ohio and Indianapolis, Indiana. These acquisitions represent a combined transaction value of over $200 million and approximately 3 million square feet of United States industrial real estate space across key distribution markets.

The acquisition is part of Arcapita’s broader United States industrial real estate strategy which targets single-tenanted assets leased on a long-term basis and multi-tenanted assets within the last mile and light industrial sectors. The United States industrial real estate sector has proven to be recession resilient with sustained, high occupancy levels during recessionary periods due to the mission-critical nature of warehousing and distribution facilities. Most recently during the COVID-19 pandemic, the industrial sector significantly outperformed other sectors including office, retail and hotel.

Cedardale Distribution Center is located in Dallas-Fort Worth; the fourth-largest metropolitan area in the United States encompassing approximately 9,300 square miles and a population of over 7.5 million people. The facility enjoys an attractive location highlighted by the presence of several prominent and Fortune 500 companies in its vicinity, including Amazon, Unilever, L’Oreal, Freightliner and Quaker, among others.

Brian Hebb, Head of US Real Estate at Arcapita, said: “The logistics sector is a key focus area for Arcapita. We have recently completed several acquisitions in the sector and as part of our broader strategy, we are focused on acquiring highly functional properties leased to investment grade tenants on a 10-15-year basis. We look forward to working with our partners to acquire additional assets in the months to come.”

Martin Tan, Chief Investment Officer at Arcapita, added: “Arcapita has a strong track record of investing in the logistics sector, having managed and exited over $5.5 billion in logistics real estate transactions globally. With the accelerated growth of e-commerce and increasing supply chain sophistication, the demand for modern logistics and warehousing space will grow exponentially.  We intend to leverage our experience to capitalize on this growth.”