Newport Beach-based CapRock Partners said it is prepping to take advantage of what could soon become a buyer’s market, with the recent close of a fundraising round for the firm’s fifth fund that will be used to invest in value-add industrial properties.
Recent fundraising rounds added more than $180 million of committed capital from institutional investors, pension funds and family offices to the Industrial Value-Add Fund III.
It will fund deals ranging between $20 million to $50 million across California, Nevada and Arizona.
“Value-add industrial is the heart of CapRock Partners,” said Jon Pharris, co-founder and president of CapRock Partners, in a statement.
“It’s our roots and we leverage our deep experience and longstanding industry relationships to access a robust pipeline of value-add investments that generate proven financial results for our investors and strategic partners year after year.”
E-Commerce Focus
About 10% of the fund will be used for pre-specified transactions totaling more than 1.1 million square feet. The rest of the fund is available “to deploy in what may become more of a buyer’s market,” the company said in a statement.
This is especially true for the e-commerce segment, which has seen surging demand in the past decade and will only continue to see gains in the wake of COVID-19, according to Pharris.
“For this and other reasons, we anticipate continued demand for industrial in key Southwest markets and we stand at the ready with discretionary capital to selectively acquire value-add properties and execute our proven formula to unlock value.”
CapRock is currently under construction on more than 4 million square feet of industrial space, including Colony Commerce Center in Ontario on behalf of Ivanhoe Cambridge. The project has been described as the largest speculative industrial project under construction in the nation.
The company has a portfolio topping 20 million square feet valued at nearly $2.4 billion.
