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After Record-setting Year, CIP Real Estate Plans to Continue Growing its Industrial Portfolio in 2023

Company plans to acquire $100-120 million in properties in the first half of the year

February 07, 2023 10:30 ET | Source: CIP Real Estate

IRVINE, Calif., Feb. 07, 2023 (GLOBE NEWSWIRE) — On the heels of a record-setting year where its portfolio topped $1 billion, CIP Real Estate expects to acquire $100 million to $120 million in additional industrial assets in the first half of 2023.

“CIP enjoyed an extremely busy last quarter of 2022, acquiring about $100 million industrial and flex properties in highly desirable markets,” said CEO Eric Smyth. “With vacancies low, and demand steady, we expect another strong year for industrial product in 2023, and plan to make additional purchases – including in our local area of Southern California.”

2022 highlights: 

  • CIP closed on two transactions in November 2022, with a total value of approximately $100 million. The deals included CIP’s first foray into the Florida market, with the purchase of two industrial parks in Tampa totaling 405,722-square-feet of flex industrial space – Hampton Oaks Business Park and Center Point Business Park. The portfolio was purchased in an off-market deal for $74.34 million. The other acquisition was the Kennesaw Mountain Business Park in the fast-growing Atlanta-metro area of Marietta, Georgia for $22.6 million. The 10-acre parcel features two buildings totaling 144,130 square feet with 18 shallow bay industrial units.
  • In 2022, CIP commenced its first ground-up development in Georgia, making use of surplus land parcels on its 1.3 million-square-foot Gwinnett Commons complex in Atlanta. The development consists of two 90,000 square foot state-of-the-art industrial buildings that have been pre-leased to Hyundai and Walgreens, with both buildings scheduled to be completed by in 2Q 2023. 
  • The current value of CIP’s investment portfolio with Almanac Realty Investors, which began in October 2019 has grown to approximately $1 billion in total value. The portfolio includes 15 projects totaling 5,571,000 square feet and over 2,000 tenants in the primary markets of Atlanta; Tampa, Florida; Charlotte, North Carolina; South Carolina; Dallas/Fort Worth; San Francisco Bay Area and Southern California. 

Looking ahead to 2023:

  • CIP is forecasting the acquisition of $100 to $120 million of additional industrial product in the first half of 2023.
  • CIP will start three more ground-up multi-tenant industrial development projects in Charlotte, North Carolina in 2023 and early 2024 totaling over 250,000 square feet. This development pipeline will exceed $62 million over the next 18 months.
  • Throughout 2023 and 2024, CIP plans to sell office and flex properties that were acquired as part of larger portfolio transactions where industrial park assets were the primary focus. Revenues from these sales will be reinvested in industrial products in the company’s target markets.
  • CIP is launching an acquisition program for a Truck Logistics/IOS platform, building off its $50 million portfolio of assets in Dallas/ Fort Worth, with a goal of growing a portfolio of $250 – $500 million in the next three years, primarily in the Southeast along with select West Coast markets.

About CIP Real Estate LLC
CIP Real Estate LLC is a full-service real estate investment company focused on the acquisition, repositioning, re-branding and management of industrial assets throughout West Coast, Southeast and Texas markets. Founded in 1995 and based in Irvine, CA, the company owns and manages approximately 10.0 million square feet of quality properties, with offices in Ontario (CA), Riverside (CA), Hayward (CA), Las Vegas, Charlotte, Atlanta and Dallas. www.ciprealestate.com