Brennan Investment Group Closes 22-Building, 1.18 Million-Square-Foot Industrial Recapitalization in Moorestown and Nashville

Brennan Investment Group has closed the recapitalization of a 22-building, 1,176,122-square-foot industrial portfolio located in Moorestown, N.J. and Nashville, Tenn., the Chicago-based private real estate investment firm announced Aug. 27.

The newly combined portfolio encompasses 20 buildings in Moorestown and two buildings in Nashville, spanning approximately 116 acres. The portfolio is currently 94% leased and consists of Class B industrial buildings with an average suite size of approximately 16,100 square feet, serving a diverse mix of industrial tenants. Buildings in the portfolio were constructed between 1974 and 2000 and feature clear heights up to 26 feet and flexible suite configurations.

The transaction marks the third recapitalization of the Moorestown buildings, which Brennan originally acquired in 2017 as part of a 26-building portfolio purchased from Mack-Cali. The firm has invested in capital improvements and operational enhancements throughout the business park over the intervening years, reducing excess office build-outs, improving functionality, and capturing rental rate growth as leases expire.

Moorestown Portfolio: A Long-Term Value-Add Hold

The Moorestown assets are located approximately 12 miles east of downtown Philadelphia with access to Interstate 295 and the New Jersey Turnpike, placing them within the Greater Philadelphia industrial market. Brennan describes the submarket as one of the most supply-constrained industrial markets on the East Coast.

The 20-building Moorestown component represents a continuation of a repositioning strategy Brennan has pursued since the 2017 acquisition, converting former office space back to light industrial use and targeting shallow-bay multi-tenant demand in Southern New Jersey. Brennan currently owns and operates more than 3.2 million square feet throughout the Philadelphia metropolitan statistical area.

"The Moorestown portfolio has been an outstanding long-term investment for Brennan," said Chris Massey, Managing Principal for the Mid-Atlantic & Northeast region. "Over the past nine years, we've enhanced the quality of the assets by returning them to their original light industrial purpose, strengthened occupancy, and positioned the portfolio to benefit from continued demand for shallow-bay industrial space throughout Southern New Jersey. This recapitalization allows us to continue executing our business plan while capitalizing on one of the most supply-constrained industrial markets on the East Coast."

A prior recapitalization of the Moorestown assets in 2021 involved Global Gate Capital, which entered a recapitalization of a 1.1 million-square-foot, 22-building light industrial portfolio in the Moorestown and Burlington Township area. Brennan remained the operating partner through that transaction.

Nashville's Harding Commerce Center Added to Combined Vehicle

The Nashville component of the recapitalized portfolio, Harding Commerce Center, consists of two industrial buildings located just south of downtown Nashville near Nashville International Airport, with immediate access to Interstate 24. Brennan characterizes the property as an infill last-mile distribution opportunity within one of the Southeast's fastest-growing industrial markets.

"Harding Commerce Center represents exactly the type of infill industrial opportunity we're targeting in Nashville," said Andrew Mazey, Managing Principal, Southeast Region. "Its proximity to downtown Nashville, the airport, and major interstate corridors makes it exceptionally attractive to last-mile distribution users. As we execute our leasing and capital improvement strategy, we believe the property is well-positioned to capture the continued demand and rental growth we're seeing throughout the Nashville market."

Brennan currently owns and operates 700,000 square feet in Nashville and is developing an additional 600,000 square feet of Class A product in the market.

Strategy and Outlook

Kevin Brennan, Co-Founder and Chief Investment Officer of Brennan Investment Group, framed the transaction as consistent with the firm's broader investment approach focused on well-located, multi-tenant industrial assets in high-demand infill markets.

"This recapitalization is another example of Brennan's disciplined investment strategy and our ability to unlock value through active asset management," Kevin Brennan said. "By focusing on well-located, multi-tenant industrial assets in high-demand markets, we've continued to create meaningful value for our investment partners while strengthening our position in markets where we see exceptional long-term fundamentals. This recapitalization reflects the strength of our operating platform and the confidence our partners place in our investment strategy."

Brennan said it will continue executing a value-add strategy across the combined portfolio through capital improvements, leasing initiatives, and hands-on property management. The firm co-invests with private and institutional capital and has acquired or developed $8 billion in industrial real estate across 30 states since its founding in 2010. Its current portfolio encompasses approximately 58 million square feet.