CapRock Partners has announced the final closing of CapRock Logistics Venture at nearly $700 million, exceeding its initial target of $450 million.
CapRock said the venture represents its first development-focused vehicle, marking an expansion of its fund business, which has traditionally focused on value-add investments.
”CapRock Logistics Venture 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.,” said the company in a statement.
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,” he added.
“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.