CapRock Logistics Venture closes oversubscribed and above target, nearly fully allocated to firm’s extensive development pipeline
Venture will fund nearly $2 billion in industrial real estate development, totaling approximately 15 million square feet in Western U.S.
NEWPORT BEACH, Calif.–CapRock Partners (“CapRock”), a leading industrial investor, developer and asset manager in the Western U.S. and Texas, today announced the final closing of CapRock Logistics Venture (the “venture”) on nearly $700 million, significantly above its initial target of $450 million. The venture represents CapRock’s first development-focused vehicle, marking an expansion of its fund business, which has traditionally focused on value-add investments.
CapRock Logistics Venture – the firm’s second oversubscribed vehicle to close in 2021 – is fully allocated to new large-scale industrial real estate projects and will fund nearly $2 billion for Class A developments strategically located throughout the Western U.S. By the end of 2021, CapRock will be under construction on approximately 7 million square feet of the venture’s 15 million-square-foot pipeline.
“CapRock Logistics Venture received strong interest and participation from some of the world’s largest institutional investors and sovereign wealth funds. The successful closing of the vehicle validates our proven investment strategy, which focuses on developing large-scale Class A logistics facilities and acquiring middle market value-add properties throughout the Western U.S. and Texas,” said Jon Pharris, co-founder and president of CapRock Partners. “Through this venture, we have the opportunity to strategically expand our geographic presence and capitalize our robust development pipeline, which is especially important as significant development is needed to address supply chain issues that continue to plague our nation’s economy.”
CapRock Logistics Venture was seeded with some of CapRock’s marquee developments, including the following:
- Palomino Business Park: A nearly 2 million-square-foot multi-building industrial masterplan located within California’s Inland Empire.
- Saddle Ranch Business Park, Phase 2: The second phase of an 800,000-square-foot seven-building industrial warehouse complex in the Inland Empire. Phase 2 encompasses three buildings totaling more than 374,000 square feet.
- I-15 Logistics: A 1.2 million-square-foot logistics facility in Fontana, Calif. The project is one of the largest single industrial buildings in the Inland Empire West submarket.
- CapRock Logistics West 202: The largest speculative industrial real estate project in the history of the City of Phoenix. The development is a state-of-the-art eight-building, Class A logistics park totaling 3.4 million square feet.
- CapRock Central Point, Phase 2: A 1.1 million-square-foot build-to-suit development for a Fortune 100 e-commerce company, located in Visalia, Calif. within the Central Valley.
“Our generation is witnessing a massive shift in how the world economy operates with the integration of ecommerce and highly sophisticated technology in the industrial sector – CapRock is at the forefront of this evolution with a wave of support from some of the world’s leading institutional investment groups,” said Patrick Daniels, co-founder and chief executive officer of CapRock Partners. “Our firm has experienced consistent growth from the beginning, and the strong participation in CapRock Logistics Venture combined with the ongoing diversification of our investor base solidifies CapRock as a premier investor in and developer of high-quality logistics assets in the U.S.”
The venture marks CapRock’s largest investment vehicle to-date. Earlier this year, CapRock announced the final close of its oversubscribed CapRock Partners Industrial Value-Add Fund III and is looking to acquire upwards of $1 billion of industrial assets for the value-add vehicle.
Hodes Weill Securities, LLC acted as global placement agent and financial advisor to CapRock.
ABOUT CAPROCK PARTNERS
Founded in 2009, Newport Beach, Calif.-based CapRock Partners is one of the leading private industrial real estate investment and development firms in the Western U.S. The company specializes in acquiring middle-market value-add industrial assets, developing large-scale institutional-quality Class A industrial warehouse facilities in key locations, and providing third-party asset management services for institutional investors. The firm is actively acquiring land for development across the Western U.S. and Texas Since inception, CapRock’s total investment, entitlement, and development pipeline is nearly 30 million square feet of industrial real estate.