NOYACK Forms Private Fund for "Disruptive" Logistics Investment
The investment strategy will focus on properties that meet emerging needs for driverless car infrastructure, same day delivery and climate-controlled storage.
NOYACK Capital has formed a private, future-focused fund to invest in logistics real estate. The firm calls the investment strategy “disruptive,” saying that it will focus on properties that meet emerging needs for driverless car infrastructure, same day delivery and climate-controlled storage.
Within logistics, the fund plans to focus on four nuanced categories: Mobility hubs, cold storage warehousing, dry warehousing and healthcare. For mobility hubs, NLI notes that it is “a newly defined property type that merges structured parking with amenities such as driverless car portals and charging, package lockers and grocery cold storage. These have been strategic hotspots for the firm, which announced earlier this month why demand for logistics infrastructure in mobility hubs (structured parking), cold storage warehousing, dry warehousing, and healthcare creates asymmetric risk-reward potential.
NLI is currently a private fund, but to embark on this new acquisition journey, the firm has applied for status as a REIT, which it expects to see by the end of next year in 2022. It will be structured as a umbrella partnership REIT or UPREIT. It will be funded with $30 million in capital from its current principal-owned industrial and parking assets.
The company is known for assessing current market conditions to identify attractive, yield-generating assets in the near term. Other funds are also looking to increase exposure to the industrial market because of how well the asset class performed through the pandemic.
Investcorp, buoyed by the promise of the sector, has added to its industrial holdings by acquiring 89 industrial properties totaling near 2.2 million square feet in Los Angeles, Dallas, Phoenix, and Seattle for $380 million. The properties bring the company’s US industrial holdings to $2.8 billion with 27 million square feet in more than 385 buildings.
And earlier this month, BBX Industrial re-engaged with the logistics industrial sector where it will begin exploring mid-market assets in Florida.
The Fort Lauderdale-based company has named Mark G. Levy to serve as its president. Levy is a seasoned veteran of the commercial real estate industry with more than 28 years of experience in senior executive leadership positions with a diverse array of public and private real estate companies.