CIP Real Estate Lands $300M Investment to Grow Industrial Business

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In another sign of how bullish industrial investors are, CIP Real Estate has secured $300 million in new capital funding from financial partner Almanac Realty Investors to expand its warehouse footprint.

Irvine, Calif.-based CIP will use the funds to acquire industrial parks and truck logistics facilities throughout Texas, the Southeast and the West Coast. The new investment from Almanac, a division of Neuberger Berman, comes after a $380 million investment CIP received from a prior fund in 2019.

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“Our team has been very successful over the past several years in identifying and closing on attractive assets despite the market challenges, including the pandemic and the rapid rise in interest rates,” CIP CEO Eric Smyth said in a statement. “We greatly appreciate Almanac’s confidence in our firm to pursue an aggressive acquisition program to basically double our portfolio in the next two or three years, to more than $2.5 billion.”

CIP said it has accrued an industrial portfolio valued at $1.2 billion since the CIP-Almanac partnership formed in late 2019, in markets such as Atlanta, Tampa, Dallas and Southern California’s Inland Empire. In August, the venture paid $103.5 million for the Clipper Court Commerce Center, a roughly 352,000-square-foot industrial complex in Fremont, Calif., in California’s Bay Area. 

Industrial properties in the Inland Empire have been selling and leasing like hotcakes recently. Earlier this month, GigaCloud Technology signed two leases combining for 833,000 square feet in Fontana, Calif., while European logistics giant Maersk signed a 1.2 million-square-foot lease in Hesperia, Calif. 

Meanwhile, at the tail end of last year, Link Logistics paid $184 million for an 800,000-square-foot warehouse leased to Home Depot in Perris, Calif. 

Nick Trombola can be reached at NTrombola@commercialobserver.com.