The purchase included an industrial property in Atlanta.

Century City-based Ares Management Corp., using funds managed by Ares Real Estate Group, acquired two portfolios of 75 industrial properties for $ 1.7 billion.
The two portfolios, purchased from different vendors, have 11.9 million square feet of industrial space. The properties are located in 16 markets in the United States, including Southern California. Other markets affected by the transaction included Atlanta; Las Vegas; Chicago; Dallas; and Nashville, Tennessee.


According to Ares, around 80% of the assets are in infill areas.
“Supported by strong fundamentals including growing demand and strong growth in rental rates, we remain committed to increasing our interest in the high conviction industrial sector,” said David Fazekas, Partner and Director of Industrial Investments at Ares Real Estate Group, in a press release. declaration.


“We continue to focus on diversifying our holdings in both leading coastal markets and high population growth markets that are experiencing an increased need for industrial space due to strained supply chains and companies that are reconfiguring their operations to accommodate additional inventory storage, ”he added.


Industrial real estate was a hot market nationwide last year with record transaction volume and rental growth, according to a report by CBRE Group Inc. Brokerage experts expect it continues to be in high demand in 2022.
Demand for space from e-commerce businesses is a major factor, with more online retail sales than in previous years. CBRE said it expects rents for industrial properties such as warehouses to continue increasing in 2022.


Ares Management has had a busy year. In mid-December, the company announced the closing of its Senior Direct Lending Fund II, which had an expected total capital base of $ 14 billion, including expected leverage.


Ares uses the fund to provide senior secured loans to mid-market US businesses.
As of October, the company closed its $ 5.1 billion direct junior loan fund.
In November, Ares and Core Spaces announced plans to acquire a portfolio of five student housing units valued at over $ 400 million using funds managed by Ares Real Estate Group. The properties have a total of 2,700 beds.


And over the summer, Ares finalized the purchase of the US real estate investment advisory and distribution business of Denver-based Black Creek Group.
Ares Real Estate Group had a portfolio of $ 37 billion in assets under management at the end of September while Ares Management Corp. had $ 282 billion in assets under management at the time.

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