IP Capital Partners has launched another industrial fund, continuing its focus on the Southeast region. The South Florida-based real estate firm under IPCP Southeast Industrial Fund II, L.P., is looking to raise $250 million, with a "hard cap" of $300 million, according to a statement by the company.
Already, the fund has closed $37 million through an initial seed round, where it initially targeted $25 million. The total buying power capability is estimated to be roughly $1 billion.
IP Capital is hoping that the pool will get "overpaid for risk," with the ultimate goal of benefiting from favorable Southeast fundamentals, leading to strong investor returns.
The company plans to implement its past strategy under the fund, targeting what it calls the "underfunded middle," which it defines as transactions worth between $15 million and $50 million, with lease terms ranging from five to eight years. This helps generate strong yields and aims to shield from downside, according to IP Capital.
The specific types of features that the pool will seek include port-driven logistics, cold storage, advanced manufacturing, supply chain decentralization and point-to-point distribution.
The Southeast alone in 2024 accounted for almost half of the entire national industrial net absorption posted in 2024, according to data posted by IP Capital. Plus, the investment firm noted that East Coast ports now generate roughly 55 percent of the total U.S. container volume.
"We believe the Southeast is the strongest industrial growth engine in the country," IP Capital Co-Founder and Chief Investment Officer Josh Procacci said.
"Population inflows, corporate migration, and supply chain realignment – combined with low taxes and business-friendly policies – are creating durable, long-term demand for logistics space."
IP Capital brings 17 years of experience in operating in Florida and the Southeast region, with its total assets under management at $2 billion across 10 million square feet. Mostly, IP Capitals' platform focuses on industrial and office properties.
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