Sam Zell buys Industrial REIT Monmouth Real Estate for $ 3.4 billion – Commercial Observer
Sam zell jump in the burning industrial market.
Zell’s Equity Commonwealth agreed to purchase an industrial real estate investment trust (REIT) Monmouth Real Estate Investment Corp. in a $ 3.4 billion all-stock deal, Monmouth said on Wednesday.
As part of the deal, Equity will control a 65% stake in the company, while New Jersey-based Monmouth will own 35%. The deal is expected to be concluded in the second half of this year.
The move gives Zell an important position in the industrial market, which exploded during the coronavirus pandemic. Monmouth’s portfolio includes 24.5 million square feet across 120 properties in 31 states.
âThe transaction provides Equity Commonwealth with a high-quality, net-leased industrial business with stable cash flow while preserving [Equityâs] capacity of the balance sheet for future acquisitions, âZell said in a statement.
The industrial sector has exploded during the pandemic, as consumers rushed to online shopping in the wake of lockdowns and companies scrambled to meet demand.
Net absorption for industrial space in densely populated areas Corridor I-81 / I-78 from Maryland to New York reached a record 23.5 million square feet in 2020. Meanwhile, nationwide industrial construction is expected to reach a five-year high in 2021.