TPG AG and Redfearn Capital Acquire 53-Warehouse Portfolio for $628M in Southeast-Focused Industrial Deal

A partnership of private equity real estate firms has closed a $628 million acquisition of 53 industrial buildings spanning seven states, marking the largest deal to date between Redfearn Capital and TPG AG and pushing Redfearn's assets under management past $1.3 billion.

TPG AG, Redfearn Capital, Atlanta Property Group and Matterhorn Venture Partners purchased the portfolio, which encompasses 5.4 million square feet of distribution, logistics and manufacturing facilities across Florida, Georgia, North Carolina, Tennessee, Minnesota, Illinois and Oregon. DRA Advisors was the seller, according to a source familiar with the deal. The buyers declined to comment on the sale.

Portfolio Overview: Shallow-Bay Warehouses Concentrated in the Southeast

Approximately 75 percent of the portfolio's properties are located in the Southeast, with top markets including Lakeland, Tampa, Atlanta, Raleigh and Charlotte. The 53 buildings are 87 percent occupied at the time of closing and consist primarily of shallow-bay warehouses serving multi-tenant, regional distribution and light industrial users. At the reported purchase price and square footage, the portfolio trades at roughly $116 per square foot, or approximately $134 per occupied square foot based on the 87 percent occupancy rate.

The Southeast markets represented in the portfolio have attracted sustained industrial demand driven by population growth, expanding manufacturing and logistics operations, and transportation infrastructure. Lakeland and Tampa benefit from the Interstate 4 corridor, while Atlanta, Raleigh and Charlotte serve as major regional distribution hubs connected by extensive interstate highway networks.

Business Plan: Targeted Upgrades, Market-Driven Hold Period

A spokesperson for Redfearn Capital said no significant renovations are planned for any of the properties, and the firm's hold period will be dictated by market conditions. TPG AG said it plans to invest in deferred building repairs and upgrades aimed at retaining existing tenants, indicating a focus on operational improvements rather than heavy repositioning.

Alex Redfearn, founder, president and CEO of Redfearn Capital, said the deal reflects the company's commitment to markets with "long-term demand."

Redfearn Capital and TPG AG: A Growing Partnership

Redfearn Capital and TPG AG have been partners since 2021, and this transaction is their largest joint acquisition to date. Delray Beach, Florida-based Redfearn Capital was founded in 2014 by Alex Redfearn and focuses on value-add, distressed and opportunistic commercial real estate investments. The firm handles property management, construction management and asset management in-house. Following the closing, Redfearn's platform has grown to more than $1.3 billion in assets under management and over 8 million square feet, with more than 250 active tenants.

TPG AG operates as a U.S. real estate platform within TPG Inc., which manages approximately $327 billion in assets globally. TPG AG has expressed continued conviction in the long-term fundamentals of the U.S. shallow-bay industrial sector, an asset class characterized by multi-tenant warehouses serving regional distribution and light manufacturing users rather than large-format logistics centers.

Broader Industrial Market Context

The acquisition comes as national industrial vacancy has begun to stabilize and institutional capital has returned selectively to the sector, with particular interest in infill and mid-size logistics locations. In South Florida specifically, the industrial market continued to soften in the second quarter, with vacancy rising to 6.7 percent from 5.6 percent a year earlier. Tenants returned more space than they leased for the fifth consecutive quarter, though the 2.3 million square feet given back represented an improvement from the first quarter.

Despite the softer leasing environment in South Florida, landlords continued raising rents, average sale prices moved higher, and developers scaled back new construction, with 6.4 million square feet still underway. Investor activity remained active in the region, with notable transactions including a $352 million industrial portfolio acquisition in Davie and a 409,000-square-foot lease signed by Ryder System in Opa-locka.

The $628 million multistate portfolio deal positions Redfearn Capital, TPG AG, Atlanta Property Group and Matterhorn Venture Partners in shallow-bay assets across markets where population and logistics growth have underpinned tenant demand, while the value-add strategy targets operational improvements to support occupancy at the portfolio's current 87 percent level.

Sources

Redfearn Capital – TPG AG, Redfearn buy 53-warehouse multistate portfolio in $628M deal