NEW YORK CITY-Private equity firm KTR Capital Partners, which focuses exclusively on the industrial sector, has closed its third fund at $1.2 billion. Launched in the second quarter of 2012, KTR Industrial Fund III LP far exceeded its $750-million target; 30% of the fund has already been committed.
In common with its predecessors, KTR III will operate across the spectrum of acquisition, development and operation, focusing on major markets and key logistics hubs across North America. The value-add discretionary fund will make both single-property and portfolio acquisitions, with development occurring on both a build-to-suit and speculative basis.
“Our objective since day one has been to combine the knowledge of a local operating partner and the perspective of a capital partner into one organization,” says KTR president Bob Savage. “Therefore, it is gratifying that investors”—which included a range of public and corporate pension funds along with other institutional players—“recognize the strength and the breadth of capabilities of our 80-person team in this challenging fundraising environment. Obviously, we operate in a bottom-line oriented industry, and we look forward to, and are invigorated by, the challenge that comes with each new fund.”
Hedaquartered at 140 Broadway in Lower Manhattan, KTR closed its first fund, Keystone Industrial Fund LP, in March 2006 at $500 million. Its second fund, KTR Industrial Fund II LP, had its final close in December 2008 with $700 million of investor capital.
Since its inception, KTR has completed 117 transactions that have ranged from $3 million to $300 million. A KTR affiliate closed last month on Northwest Corporate Park, a 19-building, 125-acre campus located in the Seattle suburb of Kent, WA.
At the time, KTR partner John DiCola commented that the acquisition “fits well with our strategy to invest in high barrier-to-entry markets where we can employ a hands-on ownership approach to re-stabilize high quality, functional assets.” Last week, KTR closed on the Prospect Park Portfolio, a 16-building mix of flex and warehouse product in Fort Lauderdale, FL.
Park Hill Real Estate Group acted as the exclusive placement agent for KTR III. The legal advisor for the fund was Seward & Kissel LLP.