Longpoint Realty Fund to Invest in Infill Industrial, Shopping Centers
The $669 million fund exceeded its target and is more than double the size of its predecessor vehicle.
Longpoint Realty Partners, a Boston-based commercial real estate private equity firm, announced the final closing of its second institutional fund, Longpoint Realty Fund II.
The fund supports Longpoint’s on-going strategy to invest in infill industrial and neighborhood shopping centers located in desirable, densely populated US markets. Its first fund garnered $280 million.
Fund II was oversubscribed with approximately $669 million of commitments, above its original hard cap of $600 million and almost 50% above its initial target of $450 million.
Longpoint’s Fund II has garnered commitments from 24 investors and the support of four consultants. Fund II, which had its first closing in April 2020, has already closed on 26 investments, representing $327 million in gross transaction size.
Industrial Asset Investment Up 16.9% YoY
Longpoint’s new fund will be joining a wave of capital aimed at the logistics market. There was $39.5 billion invested in industrial assets in the third quarter, a year-over-year increase of 16.9%.
Investors have room to run in this product type, and investment volumes are forecast to reach new highs in Q4, according to Colliers.
Labor shortages are prompting companies to rethink their distribution networks, Colliers said. Some groups are searching for additional distribution centers to accommodate drivers who want to make it home daily. This means opening centers 250 miles apart.