JP Morgan, Freehill Capital Partners Form Industrial Acquisition Joint Venture

J.P. Morgan continues to push its chips into industrial real estate.

Commercial Observer can first report that J.P. Morgan Asset Management and Freehill Capital Partners, an industrial real estate investment firm, announced a new joint venture Tuesday to acquire manufacturing-oriented industrial facilities across Houston and with access to the Port of Houston.

J.P. Morgan will hold a 95 percent interest in the joint venture, while Freehill will round out the other 5 percent, according to a release.

The amount of investment capital behind the partnership was not disclosed.

Chad Tredway, global head of real estate at J.P. Morgan Asset Management, said in a statement that with increased onshoring and reshoring activity across the U.S., as well as the enormous investment demand tied to artificial intelligence and data center infrastructure, manufacturing-oriented industrial real estate is poised to perform well in the long run via “sustained growth.”

“This initiative reinforces our strong conviction in the manufacturing sector and provides us an opportunity to create value for our clients and communities,” said Tredway.

The joint venture will prioritize industrial sites with high power capacity, strong truck access, crane-ready functionality and outdoor storage, and will seek to invest in the maintenance and modernization of these buildings, according to a release.

“With limited new supply and tenant needs increasingly centered on specialized features, we look forward to identifying opportunities for our investors in a segment that can be difficult to access at scale,” said Preston Meyer, portfolio manager at J.P. Morgan Asset Management.

The joint venture is already getting busy. The JP Morgan and Freehill partnership announced that it acquired a 30,000-square-foot industrial building that sits on 2.3 acres at 18401 Intercontinental Crossing Drive in North Houston. Terms of that deal were not disclosed.

Adam Hawkins, president of Freehill Capital Partners, said in a statement that his firm is “excited to have found a capital partner who shared our conviction in this uniquely positioned niche of the industrial market.”