Allianz Real Estate, acting on behalf of several Allianz Group companies, has provided US$94 million in financing to U.S. Cities Industrial Fund (“USCIF”), an open-ended core fund managed by Nuveen Real Estate.
Logistics remains a key focus for Allianz Real Estate as diversification continues to play a fundamental role in the firm’s investment strategy. The sector is being driven by strong demand from tenants, especially due to the surge of online shopping. Investors have also followed the trend and pent up demand since 2019. Consistent with Allianz’s investment criteria, the industrial portfolio fits well with its long-term investment horizon, focused on high quality assets located in key dynamic centers.
The portfolio comprises six industrial/distribution assets totaling 1.45 million sq ft. located in three desirable logistics markets: Chicago, Denver and Los Angeles. All assets are 100% leased for the long term to six diverse tenants with strong credit.
The assets are located in strategic markets for Allianz Real Estate. Two of the warehouses are in the Chicago area, which continues to offer solid economic dynamism being one of the major sources of employment in the U.S. Chicago’s industrial sector benefits from its geographic location with strong rail, highway connectivity and airport access, serving as the primary distribution hub for the Midwest.
One of the warehouses is in the Denver area, which is strategically located with access to major highways and the Denver International Airport. The location represents the largest industrial submarket in the Denver MSA, with over 39 million sq ft. of inventory and 2.4 million sq ft. under construction. The three remaining warehouses are located in the Los Angeles area, with access to major infrastructure including highways and the San Bernardino Airport, and benefit from the large, wealthy Los Angeles population base.
Mike Cale, Co-head of US Debt, Allianz Real Estate added: “Nuveen is a key strategic partner of Allianz Real Estate across the globe. We are excited to begin our debt relationship with them in the U.S. with the closing of this high quality, well located industrial portfolio. Given the volatility in the market, this financing for a best in class sponsor aligns well with our long term investment strategy.”
“The trend for logistics is one we have been following for some years. The current environment has not doubt provided additional opportunities – there has been an overwhelming need for industrial space and warehouses, particularly in densely populated areas around key industrial and distribution centers in the U.S. Logistics remains a growing industry as the demand for more distribution space continues to increase. At Allianz Real Estate, we are fully prepared to capitalize on that trend,” said Christoph Donner, CEO of Allianz Real Estate of America.
