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$410M Cobalt REIT II Builds In Development

DALLAS-Cobalt Capital Partners will deploy 20% of the equity fund to a light-industrial spec program. The new line opens development doors with local and regional partners.

By Connie Gore | Updated on February 21, 2008

DALLAS-Cobalt Capital Partners has opened the development door for the first time, tapping a 20% reserve earmarked for the initiative in its $410-million Cobalt REIT II. The first projects are under way in Georgia, Minnesota and Texas.

Funded by seven institutional investors, REIT II holds enough promise for Cobalt to tap about $80 million of equity and leverage it to $250 million to $300 million for the development of roughly five million sf of light-industrial in the next three years, according to Lewis D. Friedland, managing partner of the Dallas-based investment group. Leading the development push is Dirk P.D. Mosis III, the REIT’s San Antonio-based managing director, with Aaron Reynolds, senior associate in the headquarters office as the program’s financial analyst.

The first ground-ups are the 348,460-sf, five-building Freeport Ninety in Stafford, TX, a 25-acre development with Avera Capital Partners of Houston as its partner; 238,112-sf Shiloh 400 Business Center in Alpharetta, GA, a three-building project on 18 acres with Charlotte, NC-based Crescent Resources LLC as the partner; and a 54,000-sf building on 5.3 acres at Diamond Lake in Rogers, MN, with Cobalt in a one-off development role. The spec buildings will come on line in the fourth quarter.

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