LaSalle Investment Management, Inc., on behalf of its client CalEast Industrial Investors, LLC, yesterday announced their entrÃ©e into the on-airport air cargo real estate sector. The acquisition, believed to be the largest portfolio of privately held air cargo facilities, consists of 90 distribution properties at 25 airports across the United States and Canada and includes the formation of a venture to help grow CalEastâs presence with industry leader Aeroterm, LLC.
The seller, a joint venture of Aeroterm, LLC and affiliates of Greenfield Partners, LLC, was represented by Mike Caprile, of CB Richard Ellis, and Banc of America Securities. Aeroterm will continue in its roles as Operating Partner and Property Manager. The portfolio contains 5.5 million square feet of distribution space and 4.3 million square feet of ramp space. CalEast was represented by the LaSalle Investment Management team of Dan Witte, Managing Director; Brian Trahan, Vice President; John Minahan, Vice President; and Neil Herceg, analyst.
âCalEast, one of the largest industrial landlords in North America, views the air cargo sector as an ideal complement to its existing portfolio,â said Witte. âAir cargo buildings represent a valuable niche of real estate in the supply chain, characterized by strong, current and expected demand, coupled by very limited supply, with a finite amount of âinside the fenceâ space that typically is controlled by government bodies.â
âOn behalf of CalEast, we are very pleased to team with Aeroterm as our operating partner,â Witte continued. âThe firm, and its founders, John Cammett and Kenneth Code have established themselves as leaders in this unique sector with a proven track record in creating value for investors, tenants and airports. Weâre confident in their ability to continue to provide the business with a distinct competitive advantage.â
The portfolio is approximately 93% leased with major tenants including FedEx Corp., UPS, DHL, the United States Postal Service, BAX Global and many of the major air carriers. It has a presence in some of the most active air cargo markets in North America including: New York, Miami, Dallas/Fort Worth, Newark, Houston, Portland, Philadelphia, Montreal, Edmonton, Calgary and Ottawa.
âWe are excited to be venturing with CalEast,â said John Cammett, President of Aeroterm. âTheir confidence and commitment is a validation of our plan and provides us with a stable, long term, competitive capital source, to continue expanding our business.â
âWe are extremely happy to have accomplished such a positive outcome, after dedicating seven years to building a significant and compelling portfolio,â said Eugene A. Gorab, President and Chief Executive Officer of Greenfield Partners, LLC. âThis has been an attractive investment for our Firm and a gratifying partnership with Aeroterm. We are confident that their new venture with CalEast and LaSalle will be equally successful.â
Russ Blackwell, CEO of CalEast Industrial Investors and Managing Director of LaSalle Investment Management added, âThe acquisition of this portfolio represents a key element in CalEastâs strategy of adjusting our risk/return mix by rotating into property types that we feel offer the most attractive opportunities for income and growth. The portfolio also offers CalEast the opportunity to gain access to both a strong portfolio and exceptional management team.â