Redfearn, TPG Pay $628M in Warehouse Deal That Sets a Basis

Delray Beach-based Redfearn Capital and TPG AG have paid $628 million for a 53-building industrial portfolio totaling 5.4 million square feet, one of the larger shallow-bay logistics trades of the year and a Palm Beach County firm’s name on a national-scale check. Redfearn sourced and led the deal, with TPG AG as capital partner alongside Atlanta Property Group and Matterhorn Venture Partners. The seller was DRA Advisors.

Why it matters

A South Florida shop putting its name on the lead line of a $628 million portfolio, rather than acting as a local operating partner brought in after the fact, is itself the story for developers watching who can still raise institutional capital at scale. Redfearn’s partnership with TPG dates to 2021 and has grown from single-asset Miami warehouse buys to a seven-state platform. For developers and sponsors courting capital partners in industrial and logistics, the deal is evidence that well-located shallow-bay assets, even scattered across secondary markets, still clear at size when the operating partner has a track record and the tenant base is diversified.

The numbers

The portfolio spans 53 buildings across Florida, Georgia, North Carolina, Tennessee, Minnesota, Illinois and Oregon, with roughly 75 percent of the assets concentrated in the Southeast, including Lakeland and Tampa, Atlanta, and Raleigh and Charlotte. The properties are 87 percent leased. At $628 million for 5.4 million square feet, the deal pencils to approximately $116 per square foot, a basis point for shallow-bay industrial that other sponsors underwriting similar portfolios can use as a comparable. Redfearn will manage the Tampa, Lakeland and Memphis assets directly, while Atlanta Property Group and Matterhorn Venture Partners operate the Atlanta, Raleigh-Durham, Charlotte and Chicago holdings. Eastdil Secured advised on debt financing and Greenberg Traurig served as legal counsel.

What’s next

“We’ve been intentionally building an industrial platform centered on well-located infill assets in markets with long-term demand,” said Alex Redfearn, the firm’s founder, president and chief executive. With occupancy at 87 percent, the new ownership group has room to push leasing before it tests an exit, and the multistate footprint gives Redfearn a bigger operating platform to bring to its next capital raise. Watch whether the $116-per-square-foot basis holds up as a marker the next time a comparable shallow-bay portfolio trades in the Southeast.