Monarch Alternative Capital, Taconic Capital buy warehouse portfolio in SJ
A joint venture formed by Taconic Capital Advisors LP and Monarch Alternative Capital LP has announced the formation of the Puerto Rico Industrial Solutions and Management platform in connection with its acquisition of a 2.2 million square-foot portfolio of industrial and logistics warehouse properties in the San Juan metropolitan area.
This portfolio of warehouses is believed to be the largest single assemblage of such assets under private ownership in Puerto Rico, the company said.
The platform will be operated by a newly formed dedicated property management firm led by Ryan Christiansen as CEO and Héctor del Río Jr. as COO. The San Juan residents have formed a Puerto Rico-based team to provide tenant-centric management to the PRISM platform.
The transaction and subsequent expenditures will aggregate to nearly $200 million of gross asset value, they said.
“These warehouses comprise a critical portion of the logistics infrastructure for many of Puerto Rico’s most important companies and we look forward to executing on our mission of providing upgraded assets and exceptional service to our tenants,” Christiansen said.
“Héctor and I are proud to lead this effort, and in doing so, develop a premier industrial real estate manager in Puerto Rico,” he said.
“Monarch has a long history of investing in real estate and other assets in Puerto Rico and the formation of the PRISM platform is a continuation of our firm’s commitment to, and conviction in, the Island’s economic recovery,” said Adam Sklar, managing principal of Monarch Alternative Capital.
“We look forward to working with Ryan, Héctor, and our partners at Taconic to build a best in class solution for tenants and creating value for all stakeholders,” he said.
“For Taconic, the PRISM investment is a testament to our confidence in the island’s continued recovery following Hurricane María and long-term economic prospects,” said Eric Sitman, director of Taconic Capital Advisors.
“We’re excited to partner with Monarch as well as Ryan and Héctor to improve these extremely well-located assets and provide high-quality services that will attract existing and new-to-market tenancy,” he said.
Meanwhile, Puerto Rico Fiscal Agency and Financial Authority Executive Director Omar Marrero said, “this investment represents a strong commitment from serious investors who continue to identify opportunities that will contribute to job creation and economic activity on the island.”
“Puerto Rico represents a tremendous opportunity for investors who believe in our future and in the capabilities of our people. We welcome this important investment, which confirms, once more, that Puerto Rico is open for business,” Marrero said.