Logistics Property Company has formed a value-add industrial real estate joint venture with a large U.S. public pension fund, expanding its investment strategy beyond ground-up logistics development and into acquisitions of existing properties.
The new vehicle represents LogiPropCo’s third institutional investment venture since the company’s founding in 2018.
Its first two ventures raised approximately $3 billion of total capital and primarily targeted develop-to-core logistics projects throughout the U.S.
Over the past eight years, LogiPropCo has developed approximately 30 million square feet across 14 markets.
The new strategy will target existing industrial properties where the company sees opportunities to create value through rehabilitation, redevelopment, covered land strategies, mark-to-market leasing and the lease-up of vacant space.
To build the acquisition platform, LogiPropCo hired Mark Crawford and Joel Wicks to lead the East and West regions, respectively.
Crawford previously served as Head of Acquisitions for Duke Realty before its acquisition by Prologis, while Wicks was previously Principal of Industrial Acquisitions at Ares. Both bring approximately 20 years of real estate experience.
The company previously completed a value-add acquisition at 572 West Street in Mansfield, Massachusetts, near the intersection of I-95 and I-495 outside Boston.
The size of the new joint venture was not disclosed.
KEY QUOTES:
“We believe in the continued demand for industrial product. We have an active pipeline of properties to leverage our platform and continue building our portfolio across the risk-return spectrum.”
Jim Martell, CEO of Logistics Property Company
“This new vehicle will benefit from LogiPropCo’s singular focus on the U.S. industrial real estate market as we collectively acquire existing logistics assets and optimize property cash flows through both operational and physical enhancements.”
Brent Steele, Chief Investment Officer of Logistics Property Company