Investment Strategy

A Disciplined Approach

To take advantage of current market conditions, Black Creek Industrial REIT IV seeks to acquire generic distribution facilities at attractive pricing to grow cash flows and capture asset appreciation, and add value through superior asset management to capitalize on improving economic conditions.

Target Markets
  • Research-driven
  • Transportation and logistics hubs
  • Submarket selection
  • On-the-ground senior management teams

Property Identification1

  • Function driven
  • Potential for cash flow growth
  • Submarket demand and supply dynamics

Portfolio Construction1

  • Diversify by property type, geography and tenant
  • Credit focus
  • Active asset management

Portfolio Management

  • National operating platform
  • Customer-driven opportunities
  • Aggregation premiums

Target Markets

Black Creek Industrial REIT IV’s strategy is to build a national industrial real estate operating platform, initially overweight in the “top 10” key national distribution markets. Black Creek Industrial REIT IV will also seek to capitalize on opportunities in other “top 25” distribution markets.

Market Selection Criteria

  • Key distribution hubs — access to interstate, airport and seaport infrastructure
  • High barriers to entry
  • High levels of annual leasing activity and / or high GDP growth

Targeted High-Barrier and GDP Growth Markets3

Why Industrial?

Distribution Warehouses: A Foundation of the Global Logistics Network

At the foundation of the supply chain lies industrial real estate: distribution warehouses that store manufactured goods at various points throughout the logistics process.

Logistics is the business of managing the flow of goods and services throughout the supply chain. Spending on logistics in the U.S. totaled approximately $1.4 trillion in 2015.3 At the foundation of this supply chain lies industrial real estate: distribution warehouses that store manufactured goods at various points throughout the logistics process. Industrial real estate is the largest sector of commercial real estate as measured by square feet.4

U.S. Commercial Real Estate
(by square feet)4

Black Creek Industrial REIT IV believes the historically high occupancy rates5 of distribution warehouses and institutional investor interest4 in them is based on the following factors:

E-Commerce Trends
Strong rent growth is forecasted for distribution warehouses due to the shift to online purchases and the need for internet-based firms to house inventory and fulfillment centers — often in multiple locations across several markets.6

Increasing Population Demand and Product Selection
A growing population is demanding more product choices and necessities — like hand soap, food, clothing, electronic devices, medical equipment, furniture, fitness equipment and other products — that are stored in distribution warehouses on their way to the consumer.

Global Manufacturing — Imports and Exports
Distribution warehouses are essential to the flow of goods both into and out of the United States in order to export products manufactured domestically and to distribute imported products manufactured globally across the country.

Generic Buildings that are Less Expensive to Re-Tenant and Have Limited Lease Obligations for Landlords
The value of distribution warehouses is driven by location and functionality — not by aesthetics. Therefore, distribution warehouses are generic in design and use, requiring very little customization which helps keep tenant-improvement costs associated with new and renewal leases low.

Distribution warehouses play an important role in our daily lives.
Watch our video to learn more.

1 Property depicted in photograph is owned by IPT which is an investment program sponsored by an entity affiliated with direct and indirect owners of BCI IV’s sponsor. By investing in BCI IV, investors will not have an interest in IPT or in this property.

2 Consists of Inland Empire, Los Angeles and San Diego markets.

3 Source: Federal Highway Administration, March 2017.

4 Source: Supply Chain Digest, June 2016.

5 Source: NCREIF (National Council of Real Estate Investment Fiduciaries). NCREIF data is based on institutional investments and is presented without leverage of fees. Data as of 03/31/17. Institutional investors often invest on substantially different terms and conditions, which may include lower fees, expenses or leverage. Institutional investors are not likely to invest in BCI IV.

6 CoStar Portfolio Strategy, May 2017. Past performance is no guarantee of future results.

7 Source: U.S. Census Bureau, Q3 2016, CBRE Research Q4 2016.