The vehicle targets development opportunities in key U.S. markets with strong demographics and significant in-place infrastructure
Butterfield Distribution Center, 2800 Diehl Road, Aurora, IL
Logistics Property Company, LLC (“LPC”) closed its second develop-to-core fund, LPC Logistics Venture Two LP, (“Venture II”) with total equity commitments of $1.8 billion from several global institutional investors and co-investment by LPC.
To date, 35 percent of the fund has been allocated to investments in Atlanta, Chicago, Dallas, Denver, Inland Empire, Pennsylvania, Phoenix, and Southern New Jersey, with significant capital to deploy for new development projects that deliver value to investors.
LPC launched its inaugural develop-to-core venture in August 2019, raising $1 billion of equity commitments from global institutional investors (“Venture I”) and LPC. LPC has fully allocated Venture I’s equity to projects representing more than 20 million square feet across the United States.
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,” LPC’s CEO Jim Martell stated.
LPC appreciated the number of investors from Venture I who committed to Venture II and is proud to add several new major institutions to participate in Venture II. Similar to Venture I, Venture II’s execution strategy is to buy well-located property in U.S. markets, develop Class A industrial buildings to modern specifications, including key ESG considerations, stabilize the assets, and hold to assemble a geographically diverse portfolio.
In 2022, LPC announced the commencement on five new developments for Venture II totaling 2.3 million square feet. The respective developments include Covington Commerce Center in Georgia, First State Logistics Center in Delaware, 975 Algonquin, 2800 W. Diehl Road, and 4275 Ferry Road, all in Illinois.
A Venture II project scheduled to break ground before the end of 2022 calendar year includes Palm Gateway Logistics Center, which includes four buildings totaling 613,000 square feet, located in Mesa, Arizona.
Venture II also closed on the land for a new 341,000 square foot warehouse development in San Bernardino, CA, with construction slated to start second quarter of 2023.
MAM Real Estate, part of Macquarie Group and LPC’s majority shareholder, acted as the fund’s exclusive financial advisor and placement agent and partnered with the LPC management team in forming the platform. MAM Real Estate is part of Macquarie Asset Management, one of the world’s leading alternative asset managers.
About Logistics Property Co.
Logistics Property Company, LLC (LPC) is an industrial real estate company focused on the acquisition, development, and management of modern logistics properties. The group is led by a diverse management team that averages more than 25 years of experience and has developed more than 55.3 million square feet of logistics buildings since 1995. LPC is headquartered in Chicago with more than 70 employees strategically located across eight offices. Its portfolio currently comprises 52 buildings across 23 million square feet in key logistics markets across North America with an estimated end value of more than $3 billion. For further information, please visit logisticspropco.com and follow @logisticspropco.
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