Cobalt Portfolio Sells for $1.6B

Client: Cobalt Capital Partners

​CBRE represented Cobalt Capital Partners in the portfolio sale of 256 light industrial assets for approximately $1.6 billion to Colony Financial of Santa Monica, California. The portfolio was complex, comprising 16 metropolitan markets, more than 250 buildings, over 30 million square feet and more than 600 tenants.

“In order to execute a transaction of that size and diversity, we needed a firm with a national platform, and a team with expertise in the product type,” said Lew Friedland, Cobalt’s founder and former managing partner, who joined Colony following the transaction to manage the day-to-day business. “We also chose CBRE for its granular knowledge of the markets and submarkets, from the perspective of leasing, property management and, ultimately, investment sales.”

CBRE’s Capital Markets professionals collaborated with the Industrial Leasing team and CBRE Econometric Advisors, which contributed critical market research and forecasts, according to Jack Fraker, Vice Chairman, Investment Properties, CBRE.
 

“Light industrial is a distinct asset class, with buildings oriented toward smaller tenants, often in irreplaceable infill locations,” said Jack Fraker, Vice Chairman, Investment Properties, CBRE. “But the significant size of this portfolio meant it had to be marketed to institutional investors, who traditionally think of industrial as bulk warehouse properties such as 1 million-square-foot national distribution centers, on the perimeter of a city.”

“We marketed the portfolio to investors from all over the world, and had an organized and comprehensive process to work with the buyers,” said Jack Fraker, Vice Chairman, Investment Properties, CBRE. The portfolio sold just three months after marketing efforts began.
 
“The Research team provided a lot of data and support in communicating why the light industrial market was an attractive opportunity in terms of supply and demand, and rent-growth potential,” added Lew Friedland, Cobalt’s founder and former managing partner, who joined Colony following the transaction to manage the day-to-day business. “We had a broad group of institutional domestic and foreign investors look at the portfolio, and concluded with a very successful transaction.”