CRG Raises $300M For Latest Industrial Fund
Investors were actively looking for ways to diversify away from the S&P 500.
Privately held real estate development and investment firm CRG has raised $300 million for its latest industrial real estate fund, which is expected to deliver $1.5 billion in new warehouse and distribution facilities for e-commerce users across key US markets over the next two years.
The fund launched in August 2021 and reached its cap three months ahead of schedule, CRG said in a statement. The firm expects the fund’s co-investment vehicles to provide an additional $150 million of equity. More than 100 private investors ranging from family offices to wealth managers to high-net-worth individuals contributed to the fund. The fund also received 10% of its total investment from diverse investors.
“We’re thrilled with the success we’ve had raising from non-institutional investors and honored to expand access to a more diverse investor base,” said Shawn Clark, president of CRG. “USLF II investors benefit from CRG’s national platform and proprietary deal flow consisting of well-located, high-quality warehouse and distribution developments in core markets where supply-demand fundamentals remain strong.”
CRG’s first industrial fund launched in 2018 and $150 million, developing $421 million of modern logistics facilities including six industrial assets under the firm’s proprietary industrial brand, The Cubes, located in Atlanta; Lehigh Valley, Penn.; Portland, Ore.; and Seattle.
Investors in the latest fund were “actively looking” for ways to diversify away from the S&P 500, said Ben Harris, head of investor relations for CRG.
“This red-hot sector was more difficult for private investors to access,” Harris said. “We decided to change that with USLF II, and the investor response was overwhelming. The fund was entirely raised through personal connections and word of mouth.”
It’s the latest in a string of investment vehicles targeting the industrial sector: earlier in June as one example, Walker & Dunlop Investment Partners (WDIP) announced it had invested $500 million in a joint venture with Pacific Life to target attractive value-add opportunities in the industrial and multifamily sectors, both big pandemic winners, with the aim to create a steady deal flow.