Matterhorn Venture Partners has formed a partnership with TPG AG U.S. Real Estate to acquire a portfolio of 16 Chicago-based industrial properties totaling approximately 986,000 square feet across the metropolitan area. The assets expand Matterhorn Venture Partners presence in the Chicago industrial market and deepen its relationship with TPG AG U.S. Real Estate.
The Chicago properties are part of a broader 53-building shallow bay industrial portfolio totaling approximately 5.4 million square feet. The full portfolio was acquired for $628 million in partnership with TPG AG U.S. Real Estate, Redfearn Capital and Atlanta Property Group. The facilities are described as distribution, logistics and manufacturing assets, reflecting a mix of industrial uses within the portfolio.
The transaction represents the largest deal to date for each of the three regional operating partners involved in the acquisition. Matterhorn Venture Partners, Redfearn Capital and Atlanta Property Group will collaborate with TPG AG U.S. Real Estate to oversee the sizable shallow bay portfolio, which spans multiple markets and industrial asset types within that segment.
Within this structure, Matterhorn Venture Partners will serve as asset manager for the Chicago-area properties. The assignment builds on the regional industrial platform the firm has established with TPG AG U.S. Real Estate since the launch of a programmatic joint venture earlier this year. The new acquisition adds scale to that initiative and further concentrates Matterhorn Venture Partners focus on the Chicago industrial market.
Commenting on the investment strategy, Matt Kay, co-founder and principal at Matterhorn Venture Partners, said the team sees opportunity to grow income through several levers. These include marking in-place rents to market on rollover, leasing existing vacancy and deploying targeted capital improvements aimed at improving tenant retention across the portfolio.
The combination of a large shallow bay portfolio, multiple regional operating partners and a programmatic joint venture framework underscores ongoing institutional interest in scaled industrial aggregation plays. For Matterhorn Venture Partners and its partners, the acquisition provides a platform to execute value-enhancement strategies across both the Chicago-area properties and the broader 5.4 million-square-foot portfolio.
