- EQT Exeter REIT purchased two industrial properties in Middletown, PA, and Portland, TN, for over $245M.
- The properties, totaling more than 1.8 MSF, were fully leased with 10-year-plus commitments at the time of sale.
- Launched in August 2023, the REIT focuses on industrial, life science, multifamily, and self-storage properties.
EQT Exeter Real Estate Income Trust Inc. made some significant moves in the industrial real estate sector by acquiring two large properties for over $245M, as reported in CommercialSearch.
Deal Details
The two industrial properties, which came online last year, are in Middletown, PA, and Portland, TN. They are both fully leased with long-term commitments.
The 1.2 MSF facility at 3327 E. Harrisburg Pike in Middletown is strategically located near Harrisburg International Airport and Norfolk Southern Railway’s Rutherford Intermodal Yard. The property was sold for over $170M and CommercialEdge data suggests that the seller was Core5 Industrial Partners.
The second property, a 638 KSF warehouse at 1500 Shoals Way in Portland, changed hands for $75M. The seller was Al. Neyer, and the property is leased to Shoals Technologies Group, a manufacturer specializing in the electrical balance of systems components.
Financing Expansion
According to public records, EQRT financed these acquisitions with a combination of equity and debt, including a $85.3M loan from New York Life Insurance Co.
The REIT, which is externally managed by EQT Exeter, an affiliate of EQT AB, aims to allocate approximately 80% of its portfolio to commercial assets, such as industrial and life science properties. The remaining 20% will be focused on multifamily and self-storage assets.
The acquisitions are part of EQRT’s broader strategy to expand its industrial portfolio. The REIT’s first acquisition, completed in March 2024, involved a 449.6 KSF industrial asset in Georgetown, TX, purchased from Portman Holdings.
Market Outlook
While the acquisition in Middletown, PA, adds a valuable asset to EQRT’s portfolio, the Central Pennsylvania submarket faces growing challenges.
According to a recent Savills report, the I-81/78 corridor has seen vacancy rates rise for seven consecutive quarters, reaching 5.6% due to weak tenant demand and an influx of speculative space.
However, Savills notes that new construction in the region is declining, which could help stabilize the market.
Looking ahead, EQRT’s acquisitions position it to benefit from long-term industrial demand, even as certain markets face near-term headwinds.
