USAA Real Estate Company Announces Recapitalization of 14 MN SF Industrial Portfolio

SAN ANTONIO, Texas, April 16, 2015 /PRNewswire/ -- USAA Real Estate Company ("RealCo") today announced the recapitalization of an industrial portfolio consisting of 25 bulk assets located across 11 states.  The transaction entailed the acquisition by new investors of interests in the portfolio held by the original investors.  The acquisition price was established by a competitive bidding process.  An affiliate of RealCo will retain an approximately 10 percent ownership stake in the recapitalized portfolio while RealCo itself will serve in an advisory capacity. 

As part of the recapitalization, $185 million in new debt financing was arranged on the portfolio with Prudential and is secured by 10 unencumbered assets which together comprise 5.9 million square feet.

In total, the portfolio consists of 14,175,572 square feet of core and value add bulk industrial real estate as well as two excess land parcels comprising 73.8 acres.  The properties, which have a median age of 9 years, are located in California, Florida, Georgia, Illinois, Indiana, Kentucky, Missouri, New Jersey, Pennsylvania, Tennessee, and Texas.  Some of the most prominent of the properties include the 832,000 SF Zappos warehouse outside of Louisville, KY, the 789,291 SF Summit Distribution Center II in Memphis, TN and the 1.6 MN SF SouthPort Logistics Center outside of Atlanta, GA.  The full portfolio is provided in the appendix to this news release.

"This is an exemplary transaction for RealCo -- one of the most important and successful in our history -- as it encapsulates our dedication to and excellence in creating value for our investors," said Len O'Donnell, President & CEO of USAA RealCo.  "With its collection of young, state of the art, well-balanced, assets, this is one of the country's largest and highest quality industrial portfolios.  By adhering to our disciplined investment approach, we delivered extraordinary results for our investors while satisfying the market's strong demand for high caliber industrial assets."

USAA Real Estate Company was advised by Dallas-based CBRE National Partners on the recapitalization of the portfolio.

About USAA Real Estate Company

USAA Real Estate Company, with approximately $12 billion in assets under management, provides co-investment, acquisition, build-to-suit and development services for corporate and institutional investors.  The USAA portfolio consists of office, industrial, multi-family, retail and hotel properties as well as investments in real estate operating companies.  USAA Real Estate Company is a subsidiary of USAA, a leading financial services company, serving military families since 1922.  For more information, visit www.usrealco.com.

Appendix: USAA Real Estate Company Bulk Distribution Portfolio

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SOURCE USAA Real Estate Company

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