REIT The Carson Cos. has formed Carson Advisors. The new unit was created to partner and invest with public and corporate pension funds, sovereign wealth funds, endowments, foundations and high net worth investors.
Carson Advisors will use The Carson Cos.’ existing platform of acquisition, development, management and leasing of industrial properties.
The firm is seeking to partner with entities that are capable of investing $100 to $200 million. Carson Advisors will allow The Carson Cos. to maintain its investment strategy of buying high-quality distribution and light manufacturing industrial properties in Southern California and Houston, Texas, while utilizing low levels of leverage.
“Carson Advisors is positioned to partner with institutional investors to acquire and invest in industrial real estate throughout Southern California and Houston, Texas,” said James D. Flynn, president of Carson. “This newly formed entity is a recent initiative by The Carson Companies to respond to the unique real estate market conditions to acquire quality assets at attractive yields within the industrial sector.”
Flynn said that The Carson Cos. does not have any legacy issues because it did not purchase any properties in Southern California in 2006 through 2008, and sold a considerable portion of its portfolio in 2008.
“During that time, the firm concentrated its efforts in Houston, Texas, where it now owns two million square feet of industrial property. Houston has weathered the storm much better than California,” Flynn added.
He noted that as a result of Carson's low leverage and conservative strategies, the firm is in the position to focus on acquisitions and partnerships during a time when many real estate companies are struggling with their portfolios.
“The Carson Cos. has existed for almost 100 years and has always been focused on generating a reliable cash yield for its shareholders,” explained Flynn. “We believe this strategy will appeal to pension investors that want to de-lever and de-risk their portfolios.”
Carson Cos. is a private REIT specializing in industrial property acquisitions, development and management. It currently owns and operates 10 million square feet of high-quality industrial property.