Realterm has announced the final close of Realterm Logistics Fund IV (RLF IV) at its contractual hard cap of $630 million in LP commitments.
RLF IV is the fourth fund in the firm’s U.S. closed-end, value-add Realterm Logistics Fund Series (RLF Series).
As with its predecessor funds, RLF IV invests in high flow through (HFT) logistics real estate throughout the U.S, said Realterm.
“Institutional appetite for HFT logistics real estate remains strong, and we are pleased that the offering was oversubscribed and raised to its hard cap,” said Pete Lesburg, Managing Director, Capital Markets, Realterm. “We have seen strong institutional support from existing Realterm partners across our family of funds and been fortunate to welcome in several new investors into this fund series.”
Realterm launched fundraising for RLF IV in late Q4 2021 and held the Fund’s final closing at the beginning of August. The Fund’s controlled investment pipeline already sits at approximately $500 million in gross investment value.
From inception, the RLF Series has invested $1.3 billion across nearly 115 HFT assets, generating top quartile returns upon realization of each of the first two funds in this series.
Strategically located in and around major population centers, primary distribution hubs and along major freight corridors, HFT properties facilitate the movement, not the storage, of freight through the nation’s supply chain. Property types include cross-dock truck terminals, transload and related trans-shipment, final mile delivery facilities, industrial outdoor storage, and parcel sortation, among others.
“The continued evolution of the direct-to-consumer supply chain has generated tremendous growth in the HFT real estate segment,” said Ed Brickley, Managing Director and Senior Fund Manager, Realterm. “This very successful fundraise illustrates investors’ enthusiasm in our investment strategy and their confidence in our team.”