CapRock Partners Closes Industrial Fund at $250M

Industrial investment and development firm CapRock Partners has closed its latest fund at a hard cap of $250 million. 

CapRock Partners Industrial Value-Add Fund III—the firm’s fifth fund overall—exceeded its original target of $200 million with commitments from US-based institutional investors, high net-worth investors and family offices. It also attracted undisclosed additional co-investment commitments, the firm said. 

The fund focuses on acquiring middle-market, value-add industrial properties at a price tag of between $20 million and $50 million per investment. Taken together with co-invest commitment, the fund will allow CapRock Partners to acquire between $800 million and $1 billion in industrial assets across primary markets California, Nevada, and Arizona and in secondary markets across Utah and the Pacific Northwest.

To date, about a third of the fund has been allocated to the acquisition of 14 value-add properties across Southern California, the Phoenix metro area and the Las Vegas basin.

“This fund will continue our investment strategy of acquiring unique middle market value-add industrial investment opportunities,” Jon Pharris, president of CapRock Partners said in prepared remarks.

Investors, not surprisingly, have been ploughing capital in the booming industrial sector. Earlier this week, private equity manager ElmTree Funds announced a partnership with Guggenheim Investments to invest in real estate assets tied to last-mile delivery, e-commerce, and logistics, and in December, Logistics Property Co. closed its LPC Logistics Venture One industrial-to-core fund with $1 billion in capital commitments to focus on developing ground-up industrial properties across the US. In another example, last summer, Nuveen Real Estate announced its US Cities Industrial Fund had raised $836 million from 15 investors with a focus on light industrial assets and US Sun Belt markets.