Industrial undertaking valued at $250 million is established by Alpaca Properties
Alpaca Real Estate and LRC Partner to Launch Industrial Strategy in High-Growth Markets
Alpaca Real Estate (ARE) and LRC Properties have announced a partnership to invest in logistics assets, particularly in high-growth markets across the Southeast and Southwest U.S. The initial portfolio consists of two Nashville assets, situated in the high-demand Southeast region with approximately 3% vacancy.
The properties, spanning a combined area of 500,000 square feet, are strategically located near manufacturing centers, including Nissan's 6.5 million-square-foot plant. They provide convenient access to I-24, Route 41, and Jefferson Pike, making them ideal for businesses looking for efficient logistics operations.
Peter Weiss, Managing Partner of Alpaca Real Estate, and Howard Lavitt, Managing Partner of LRC, have a history of investing in top-tier logistics and distribution centres, serving as central hubs for supply chains and e-commerce. The strong demand drivers for infill logistics assets include e-commerce, onshoring and nearshoring, and long-term supply constraints.
The U.S. industrial market is heavily composed of infill logistics assets, supported by these strong demand drivers. The limited land availability and high construction costs are contributing to long-term supply constraints in the market. Potential trade policy impacts are expected to remain in place as tailwinds for the infill logistics assets market.
The partnership between Alpaca Real Estate and LRC aims to leverage operational and repositioning expertise to create value. In the past, Howard Lavitt has invested in logistics assets in Nashville, particularly in first-class warehousing and distribution centres. Nashville's success as a market for LRC is attributed to resilient demand, a great labor pool, and continued rent growth throughout multiple cycles.
Alpaca Real Estate has launched a $250 million industrial strategy, focusing on infill logistics properties in high-growth markets with diverse employment and low cost of labor. The strategy also prioritizes assets that offer convenient access to major transportation routes.
LRC Properties is partnering with Alpaca Real Estate to continue their investment in logistics assets in Nashville. This partnership marks an exciting step forward for both companies, as they work together to capitalize on manufacturing onshoring and meet the growing demand for efficient logistics solutions.
