Joint venture between Ares and CapRock closes disposition of 100% leased core industrial logistics facility
LAS VEGAS – [June 27, 2023] – Ares Management Corporation (NYSE: ARES) (“Ares”) and CapRock Partners (“CapRock”), announced today the sale of the recently completed Tropical Logistics Phase II to institutional investor, Stockbridge Capital Group. The facility was a joint venture between CapRock and real estate funds managed by Ares Management.
Located within the North Las Vegas submarket, the 21.9-acre Class A industrial warehouse complex includes three state-of-the-art single-tenant buildings totaling 442,780 square feet. The asset was 100% leased and occupied by three high-quality tenants at the time of sale.
“Tropical Logistics Phase II attracted significant tenant interest due to its modern features and prime location within a major U.S growth market,” said Jay Glaubach, Partner and Co-Head of U.S. Real Estate Investments at Ares. “This property builds on the well-received delivery of Tropical Logistics Phase I as the Las Vegas market continues to experience strong industrial demand to meet growing e-commerce and distribution needs.”
“The sale of Tropical Logistics Phase II marks another successful milestone for our joint venture in Las Vegas, highlighting Ares and CapRock’s collective commitment to delivering value-driven logistics solutions to the industrial real estate market,” said Jon Pharris, co-founder and president of CapRock. “We are grateful for the collaborative efforts of our team, who worked diligently to ensure the smooth execution of this transaction. CapRock remains dedicated to its strategy of acquiring and developing best-in-class properties that generate strong returns for our investors and contribute to the economic development of the communities in which we operate.”
Located at 6325-6185 N. Beesley Drive, Tropical Logistics Phase II is adjacent to the I-15 freeway, offering prime visibility and easy access to the I-15 / NV-215 freeway interchange via E. Tropical Parkway. The asset’s buildings range in size from 91,591 square feet to 249,085 square feet and feature 32-foot clear heights, ESFR sprinklers, and 185-foot to 202-foot 100% concrete truck courts. They also provide a combined 10,969 square feet of well-appointed office space, 62 dock-high doors, six grade-level doors, and ample power. Each building was pre-leased prior to construction completion.
Tropical Logistics Phase II is the third development that has been completed as part of the Ares and CapRock joint venture. The firms have partnered in the development of Tropical Logistics Phase I, a 1.1-million-square-foot Class A logistics facility that was completed and sold in the second quarter of 2022, and Spanish Ridge Industrial Park, a recently completed, partially leased 230,899-square-foot industrial complex in the Southwest Las Vegas submarket.
The Ares and CapRock joint venture was represented by Cushman & Wakefield with local representation by JLL.
ABOUT ARES MANAGEMENT CORPORATION
Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, private equity, real estate and infrastructure asset classes. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of March 31, 2023, Ares Management Corporation’s global platform had approximately $360 billion of assets under management with more than 2,600 employees operating across North America, Europe, Asia Pacific and the Middle East. For more information, please visit www.aresmgmt.com.
ABOUT ARES REAL ESTATE
Ares Real Estate manages comprehensive public and private equity and debt strategies with approximately $49.2 billion of assets under management and 240 investment professionals, as of March 31, 2023. The Ares Real Estate team maintains a time-tested and consistent investment approach focusing on major property types that have value creation opportunities, located in liquid markets with diversified economies.
ABOUT CAPROCK PARTNERS
Founded in 2009 in Newport Beach, Calif., CapRock Partners is a privately owned investor and developer of industrial real estate in the Western and Central U.S. With approximately $2.7 billion of assets under management or advisement as of December 31, 2022, the company specializes in acquiring middle-market value-add industrial assets, developing large-scale institutional-quality Class A industrial warehouse facilities, and providing third-party asset management services for institutional investors. CapRock has approximately 16 million square feet of Class A logistics facilities in various stages of development and is actively acquiring land for development and middle-market value-add assets, typically between $20 million and $100 million per acquisition. Since inception, its total investment and development pipeline exceeds 30 million square feet of industrial real estate.