Dermody Properties Raises $1.1B for Industrial Fund

DPIF III exceeded its target fundraising goal of $800 million.

Dermody Properties LLC has closed its third commingled fund, the Dermody Properties Industrial Fund III, L.P.

Dermody Properties, a national private equity real estate investment, development and management company focused exclusively on the logistics real estate sector, says DPIF III raised $1.1 billion. The fund, which exceeded its target fundraising goal of $800 million, has a number of investors, including public and corporate pension funds, insurance companies and other institutional investors. Dermody says nearly all of the investors from its first and second fund investors committed to DPIF III. In addition, there were significant new investors.

“We are very pleased about our fundraising success for DPIF III and the retention of our strong institutional partners from DPIF I and II, as well as expanding our base of like-minded investors,” Kathleen S. Briscoe, partner and chief capital officer at Dermody Properties, said in a prepared statement. 

With DPIF III, Dermody Properties will continue acquiring, developing and operating Class A, logistics-focused properties throughout significant population centers and critical hubs in the United States. The fund will invest in both single-property and portfolio acquisitions. It will also pursue development opportunities.

Dermody is launching the fund in a robust environment for industrial assets. And the sector is expected to further heat up in the coming years.

The Urban Land Institute projects industrial rent growth to increase by 4% in 2021. In 2022, industrial should grow 3.7%, and in 2023 it should rise 3.1%. 

And Moody’s Analytics predicts industrial will post the most substantial rent increases of all asset classes this year, with asking rents expected to grow by 2.8% and effective rents estimated to increase by 3%.