Arden Logistics Parks: Company Profile

Background

Arden Logistics Parks, established in 2021 by Arden Group, is a vertically integrated real estate operating platform specializing in the acquisition, improvement, and management of light industrial business parks across the United States. The company focuses on last-mile facilities situated in highly sought-after urban infill locations, catering primarily to small and medium-sized businesses. Arden Logistics Parks operates a geographically diverse portfolio exceeding 10 million square feet, encompassing over 240 buildings and 40 business parks across nine states, serving approximately 1,400 tenants.

Key Strategic Focus

Arden Logistics Parks concentrates on the multi-tenant light industrial asset class, targeting properties that support warehouse, distribution, and light manufacturing operations. The company's strategic objectives include:

• Acquisition and Repositioning: Identifying and acquiring underperforming industrial properties, implementing capital improvements, and repositioning them to enhance value and appeal to a diverse tenant base.

• Property Management: Providing efficient and responsive property management services to ensure tenant satisfaction and operational excellence.

• Market Expansion: Expanding its footprint in key U.S. markets, focusing on transit-oriented locations that support industrial and small business tenancy.

The company employs a core-plus to value-add investment strategy, evaluating opportunities that require renovations, rebranding, repositioning, leasing, and land development for outdoor storage.

Financials and Funding

Arden Logistics Parks is a privately held subsidiary of Arden Group, a vertically integrated real estate company and fund manager. Arden Group has acquired over $7 billion in properties and asset-managed more than $12 billion in commercial real estate assets. In 2021, Arden Group launched Arden Logistics Parks as a logistics real estate operating platform, with plans to grow its portfolio to $2 billion in gross asset value.

Pipeline Development

Arden Logistics Parks has been actively expanding its portfolio through strategic acquisitions:

• Greater Boston Area: In June 2022, the company acquired an eight-property portfolio totaling 1.27 million square feet, marking its first major acquisition in the Boston market.

• Charlotte, NC: In April 2023, Arden Logistics Parks expanded its presence in Charlotte by acquiring the Northridge Business Center, a four-building, 174,000-square-foot flex industrial portfolio.

• Houston, TX: The company has invested in North Park 34, a 34-building industrial park in North Houston, implementing significant capital improvements to enhance tenant experience and leasing success.

Technological Platform and Innovation

Arden Logistics Parks leverages a tech-enabled investment platform to efficiently manage its portfolio. The company employs data-driven decision-making processes, utilizing advanced analytics and market intelligence to identify acquisition opportunities, optimize property management, and enhance tenant engagement. This approach enables the company to respond swiftly to market dynamics and tenant needs, maintaining a competitive edge in the logistics real estate sector.

Leadership Team

The leadership team of Arden Logistics Parks comprises seasoned professionals with extensive experience in the real estate and logistics sectors:

• Craig A. Spencer: Chairman & CEO of Arden Group, Craig has been instrumental in establishing Arden Logistics Parks and guiding its strategic direction.

• Shike Goedar: President & Chief Investment Officer, Shike joined Arden in 2017 and has been pivotal in launching and expanding the company's industrial platform.

• Barbara Rea: Chief Operating Officer, Barbara brings over 10 years of experience in the industrial real estate sector, having previously served as COO at BKM Capital Partners.

• Pamela Larin: Chief Financial Officer, Pamela has a background in finance and real estate fund management, with prior experience at Blackstone-backed Link Logistics.

• Robert Timmons: Managing Director of Asset Management, Robert has managed portfolios totaling over 25 million square feet, with an aggregate market value of approximately $2.0 billion.

• Christian Vergilio: Director of Acquisitions, Christian has experience in underwriting industrial, office, and mixed-use transactions, with a focus on investments exceeding $400 million.

Market Insights and Competitor Analysis

The U.S. industrial real estate market, particularly the multi-tenant light industrial sector, has experienced significant growth due to the rise of e-commerce, supply chain onshoring, and increased demand for last-mile facilities. This sector is characterized by fragmented ownership, presenting opportunities for consolidation and value creation through strategic acquisitions and management.

Arden Logistics Parks operates in a competitive landscape that includes:

• Prologis: A global leader in logistics real estate, focusing on high-quality distribution facilities.

• Duke Realty: Specializes in industrial properties, with a significant presence in the U.S. market.

• Industrious: Focuses on flexible workspace solutions within industrial settings.

Arden Logistics Parks differentiates itself through its focus on small and medium-sized businesses, its vertically integrated operating platform, and its commitment to last-mile facilities in urban infill locations.

Strategic Collaborations and Partnerships

In October 2022, Arden Group and Wafra Inc. launched a venture targeting a $1.0 billion aggregation of industrial service facilities in top U.S. growth markets. This partnership aims to scale a diversified portfolio of industrial service facilities, including industrial outdoor storage sites, truck terminals, trailer parking, and last-mile port facilities.

Operational Insights and Future Directions

Arden Logistics Parks' vertically integrated structure allows for efficient management of the entire investment lifecycle, from acquisition and repositioning to property management and leasing. This approach enables the company to respond swiftly to market changes and tenant needs, maintaining high occupancy rates and tenant satisfaction.

The company plans to continue expanding its portfolio through strategic acquisitions in key U.S. markets, focusing on urban infill locations that support industrial and small business tenancy. Arden Logistics Parks aims to leverage its operational expertise and market knowledge to capitalize on opportunities in the growing industrial real estate sector.