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High Flow Through Logistics Drawing Investor Attention

Institutional appetite for high flow through (HFT) logistics real estate remains strong, with Realterm raising raised $630 million in LP commitments for its latest fund that focuses on this category.

The Realterm Logistics Fund IV (RLF IV) hit its contractual hard cap of $630 million in LP commitments. It’s the fourth fund in the firm’s US closed-end, value-add Realterm Logistics Fund Series. Realterm defined HFT properties as ones that facilitate the movement, not the storage, of freight through the nation’s supply chain.

Property types include cross-dock truck terminals, transload and related trans-shipment, final mile delivery facilities, industrial outdoor storage, and parcel sortation, among others.

Direct-to-Consumer Supply Chain Evolving

Pete Lesburg, managing director, capital markets, Realterm, said this fund welcomed new investors. The fund’s controlled-investment pipeline sits at approximately $500 million in gross investment value, according to Realterm. The RLF Series has invested $1.3 billion across nearly 115 HFT assets, generating top quartile returns upon realization of each of the first two funds in this series.

“The continued evolution of the direct-to-consumer supply chain has generated tremendous growth in the HFT real estate segment,” Ed Brickley, managing director and senior fund manager, Realterm, said in a prepared statement.

Black Salmon Closes $500M Industrial Fund

Separately, Black Salmon closed its industrial fund for the acquisition and development of supply chain real estate in the Sunbelt.

The firm’s investment strategy focuses on merchant build, opportunistic development, and value-add opportunities across the entire US supply chain – distribution warehouses, industrial infrastructure assets, and cold storage – in strategic markets concentrated near distribution hubs, such as coastal and inland ports and railways.

Jorge Escobar, managing partner and Co-CEO of Black Salmon, said in a release that the fund has a 50-acre development site less than five miles from the Port of Savannah, Ga. with plans to construct a Class A truck terminal and transload facility.

It also is working on a multi-phased development project along I-85 northeast of Atlanta for a Class A distribution warehouse adjacent to SK Innovation, a multi-billion-dollar electric car battery manufacturer that recently completed a 2.4 million-square-foot plant.

 

Source: GlobeSt