A New York-based investors group has acquired at least six industrial properties in Racine and Kenosha counties for $41.5 million, according to state records.
The deal shows continued investment interest in the two counties that sit between the Milwaukee and Chicago areas and have seen a lot of industrial real estate development activity of late, particularly along the I-94 corridor.
The properties are largely located in Pleasant Prairie, but one of them is located in Yorkville. The buyer is Platinum Owner WI LLC, an affiliate of New York-based investment firm KKR. The seller is HS Fund V ZL Portfolio Investors LLC, a private equity fund managed by Wobrun, Massachusetts-based High Street Realty Co. LLC.
The properties (and sale prices) include:
8200 100th St., Pleasant Prairie ($14 million)
1101 Sylvania Ave., Yorkville ($10 million)
9505 72nd Ave., Pleasant Prairie ($6 million)
8330 107th St., Pleasant Prairie ($5 million)
10795 72nd Ave., Pleasant Prairie ($5 million)
8100 100th St., Pleasant Prairie ($1.5 million)
KKR acquired them as part of a larger portfolio of approximately 9.7 million square feet of industrial real estate properties. The properties are located in seven major markets throughout the U.S., and were acquired for a total of roughly $835 million, according to a news release.
The portfolio includes properties in Atlanta, Baltimore, Chicago (which includes the Wisconsin properties), central Florida, Dallas, south Florida and central Pennsylvania.
“This acquisition is an important milestone for our business as we continue to invest behind the strong demand fundamentals for warehouses that we see across the country,” said Roger Morales, KKR partner and head of commercial real estate transactions in the Americas. “This is a strategic portfolio for us that deepens our footprint in our existing markets and also expands our holdings into attractive new markets.”
KKR made the investment through its Real Estate Partners Americas Fund II. Since launching a designated real estate platform in 2011, KKR has grown its real estate assets to approximately $14 billion in the U.S., Europe and Asia as of Sept. 30.
CBRE National Partners represented High Street in the transaction.
Neither the buyer nor the seller immediately responded to a request for comment.
HS Fund V acquired the six properties in July 2019 from Milwaukee-based Zilber Property Group as part of a $130 million, 15-property portfolio deal.