Inland Empire Garners Portion of Logistics Property Company’s $1.8B Fund

By: Sharjeel Sohaib

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Nov 18, 2022

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Key Points

  • Logistics Property Company, LLC (LPC), an industrial real estate firm, is dedicated to purchasing, creating, and administering contemporary logistics buildings.
  • With co-investment from Logistics Property Company and total equity commitments of $1.8 billion from several international institutional investors, Logistics Property Company, LLC (“LPC”) launched its second develop-to-core fund, LPC Logistics Venture Two LP (“Venture II”).
  • Part of the fund would be allocated to new developments in the Inland Empire

$1.8B Fund of LPC to Benefit the New Development Initiatives in Inland Empire

The $1.8 billion fund has committed 35% of its assets to investments in Atlanta, Chicago, Dallas, Denver, Inland Empire, Pennsylvania, Phoenix, and Southern New Jersey. There is still a sizable amount of money available for new development initiatives that would benefit investors.

Logistics Property Company 

Logistics Property Company, LLC (LPC) is to pioneer industrial real estate and encourage disciplined investment to achieve the best results for its employees, the community, and the environment.

In addition to being the right thing to do, they are strategically involved in equity, diversity, and inclusion (EDI) and environmental, social, and governance (ESG) since doing so lower the tenants’ tenancy costs.

LPC developed the following internal working groups to administer its programs effectively:

1. ESG Committee for LPC.

2. Committee for LPC Community Engagement.

3. Women’s Leadership Forum at LPC

4. Task Force for LPC Post-Epidemic Recovery.

Investment Made in Venture I of LPC

In August 2019, LPC launched its first build-to-core venture, securing $1 billion in equity commitments from international institutional investors (“Venture I”) and LPC. “Build-to-core is a real estate strategy that is defined as developing a project from the ground up (β€œbuild”) and then holding the stabilized (β€œcore”) property for the long term.”

LPC has fully allocated venture I’s equity to projects totaling more than 20 million square feet across the country.

Beginning of Venture II 

LPC also welcomed several new significant organizations to participate in Venture II and appreciates the number of investors from Venture I who committed to Venture II. 

The execution strategy for Venture II is similar to that of Venture I: 

  • acquire well-located real estate in U.S. markets; 
  • build Class A industrial buildings to current specifications; 
  • take important ESG factors into account; 
  • stabilize the assets and; 
  • hold to assemble a geographically diverse portfolio.

The successful capital raised for Venture II “speaks to the opportunistic industrial real estate market and the strong develop-to-core strategy offering investors the ability to own Class A industrial facilities in tier one locations at an attractive basis,”

Jim Martell | CEO | Logistics Property Company

Venture II Projects

The start of five new developments for Venture II totaling 2.3 million square feet was announced by LPC in 2022. The five projects are as under: 

  1. Covington Commerce Center in Georgia, 
  2. First State Logistics Center in Delaware, 
  3. 975 Algonquin, 2800 W. Diehl Road, and 4275 Ferry Road are some developments that fall under each category.
  4. The Palm Gateway Logistics Center consists of four buildings with a combined area of 613,000 square feet. It is a Venture II project expected to break ground before the end of the calendar year 2022. It is situated in Mesa, Arizona.
  5. In San Bernardino, California, Venture II closed on the site for a brand-new 341,000-square-foot warehouse building. Work is expected to begin there in the second quarter of 2023.

The fund’s sole financial advisor and placement agent, MAM Real Estate, a division of Macquarie Group and the majority shareholder of LPC, collaborated with the LPC management group to create the platform. 

One of the top alternative asset managers in the world is Macquarie Asset Management, which includes MAM Real Estate.

Wrap Up!

LPC Logistics Venture Two LP, the second develop-to-core fund formed by Logistics Property Company, LLC (LPC) (“Venture II”). Investing in Atlanta, Chicago, Dallas, Denver, Inland Empire, Pennsylvania, Phoenix, and Southern New Jersey will account for 35% of the $1.8 billion fund’s total assets. The acquisition of well-located real estate in U.S. markets is the focus of Venture II’s execution strategy, which is identical to that of Venture I.

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