Realterm Closes $370M Fund For Logistics Investments
The fund is the third from the private equity investor and developer to focus on high-flow through logistics facilities like truck terminals, shipment facilities and transit hubs.
Private equity investor and developer Realterm has raised $370 million for a new fund focused on investments in logistics properties like truck terminals, shipment facilities and transit hubs.
The company announced the closing of Realterm Logistics Fund III, its tenth fund, last week noting that the offering hit its hard cap as a consequence of strong investor demand.
“We are grateful for the strong institutional support from our longstanding Realterm partners and are excited to welcome several new investors into the partnership,” Ed Brickley, managing director and senior fund manager for the Realterm Logistics Fund series, said in a statement. “Our investment and asset management teams have deep experience operating through cycles, and we are eager to bring our financial and operational expertise to bear during this current market dislocation.”
Like the company’s two previous logistic funds, the latest offering invests in “high flow-through” logistics real estate throughout the US. These properties are located in and around major population centers, primary distribution hubs and along major freight corridors, and serve to facilitate the movement of freight through the nation’s supply chains. Other examples include parcel sorting sites and air cargo facilities, along with final-mile delivery centers.
“The effect of e-commerce on customers’ delivery expectations and retailers’ delivery promises has been a profound global phenomenon,” Realterm CEO Bob Fordi added in a statement. “COVID-19′s effect will accelerate the rate of change in e-commerce penetration that Realterm had previously recognized as a 20-year-plus tailwind for our business,”
A recent report from commercial real estate firm CBRE found that the COVID-19 crisis is likely to increase demand for warehouse space as manufacturers, wholesalers and retailers look to store products closer to manufacturing centers and consumers. Even after cities and states gradually reopen economies, continued social distancing efforts by consumers are likely to fuel further e-commerce use and consequently greater demand for warehouses and stateside supply chains.