CapRock Partners, a private investment and development firm, has closed on more than $180 million in funding to expand its industrial real estate portfolio on the West Coast.
The firm announced a first and subsequent second closing of committed capital for CapRock Partners Industrial Value-Add Fund III. The funding includes commitments from institutional investors, pension funds and family offices. It was seeded with industrial assets totaling more than 1.1 million square feet.
The Newport Beach-based firm focuses on industrial investment on the West Coast and the country’s port markets. The latest commitments create the firm’s fifth fund, and the third in its industrial value-add series. It will target middle-market industrial properties, typically between $20 million to $50 million per acquisition, across California, Nevada and Arizona, according to the firm.
Southern California is the hottest industrial market in the country, but as with almost every other sector, action has mostly been put on ice due to the suspended economies around the world. But Jon Pharris, co-founder and president of CapRock Partners, told Commercial Observer that his firm has continued signing leases across its portfolio since the beginning of March — without any material change to terms — and they are ready for “what may become more of a buyer’s market.”
“The industrial market had significant tailwinds to begin with, but I think the Covid-19 pandemic is going to accelerate additional demand drivers for industrial assets,” Pharris told CO. “Even after things open up, consumer habits and behaviors are going to