CapRock Partners, one of the fastest-growing private industrial investment and development firms focused solely on the Western U.S., today announced the first closing of the CapRock Partners Industrial Value-Add Fund III, totaling more than $150 million of committed capital in the fund and co-invest vehicles. The firmâ€™s fifth fund overall and the third in its industrial value-add series, CapRock Partners Industrial Value-Add Fund III includes investments from institutional investors, pension funds, and family offices.
â€œValue-add industrial is the heart of CapRock Partners,â€ said Jon Pharris, co-founder and president of CapRock Partners. â€œValue-add is where our roots are, and our team leverages its deep experience and longstanding relationships with those in the commercial real estate industry to access a robust pipeline of value-add investments that generate proven financial results for our investors and strategic partners year after year.â€
The CapRock Partners Industrial Value-Add Fund III will focus on the acquisition of middle market, value-add industrial properties, typically between $20 million to $50 million per acquisition, across California, Nevada and Arizona. These submarkets are consistent with CapRock Partnersâ€™ core investment strategy focused on West Coast port markets, which are leading gateways to trade between the U.S. and Asia, and other adjacent high-growth major metropolitan areas that reap the economic benefits of these ports. To date, the fund has acquired three projects with multiple additional projects in escrow:
- San Diego, Calif.: CapRock acquired 1855 Dornoch Ct. in summer 2019, a 210,130-square-foot industrial building located within the Otay Mesa submarket of San Diego. Along with other renovations, CapRock is enhancing the propertyâ€™s functionality by removing second-story office space, adding seven dock-high doors, and re-configuring the parcel to accommodate excess parking stalls. With ample power, 26 to 28-foot clear heights, 13 dock doors and one grade-level ramp, the facility can accommodate warehouse/distribution and light manufacturing uses.
- Phoenix, Ariz.: CapRock acquired 7200 W. Roosevelt Street, a 216,880-square-foot class A industrial building, in early 2020 in an off-market transaction. The property is located in the Southwest submarket of Phoenix and benefits from a prime location with proximity to four major freeways and high-quality neighboring tenants such as Amazon, Target, FedEx and The Home Depot.
- Las Vegas, Nev.: CapRock recently purchased Walnut Business Park, a Class A multi-tenant business park located in the North Las Vegas submarket. The property features 94,808 square feet of industrial space spread across two buildings. CapRock Partners purchased the property with significant near-term rollover with the intent of renovating the industrial suites to capitalize on the lack of available units in the sub-10,000-square-foot-range in the local submarket. The company will be acquiring the adjacent five acres this month and will commence construction on a new approximately 100,000 sq. ft. Class A industrial building this summer.
â€œThe explosion of e-commerce in the past decade has been driving demand for last-mile fulfillment centers in immediate port markets and other regional high growth areas, most of which lack availability of developable land,â€ added Pharris. â€œLeveraging our disciplined and strategic entrepreneurial approach, we have developed a proven formula to unlock value in underperforming properties through our value-add strategy, enabling us to reposition existing assets and deliver much needed high-quality industrial properties in these markets.â€
In addition to its focus on middle-market, value-add industrial assets, CapRock Partners also is one of the most active developers of large-scale institutional-quality, Class A industrial warehouse facilities across the Western U.S. In 2020, CapRock will be under construction on four separate 1-million-square-foot, Class A industrial projects, including Colony Commerce Center in Ontario, Calif. on behalf of Ivanhoe Cambridge. Colony Commerce Center is one of the largest spec industrial projects under construction in the nation. Now in its 11th year, CapRock Partners has acquired, developed, or has in its pipeline more than 18 million total square feet.
ABOUT CAPROCK PARTNERS
Since its founding in 2009, Newport Beach, Calif.-based CapRock Partners has become one of the fastest-growing private industrial real estate investment and development firms in the Western U.S. The company focuses on middle-market, value-add industrial assets and developing large-scale institutional-quality, Class A industrial warehouse facilities in key locations, serving the needs of corporate America. CapRock Partners is registered with the U.S. Securities and Exchange Commission. The firm is actively acquiring land for development and value-add industrial buildings in the Western United States. For more information, visit www.caprock-partners.com. Follow the company on Facebook, LinkedIn, Twitter and Instagram.