CIP Real Estate Gets $300M Capital Allocation From Almanac Realty

CIP Real Estate has received a second capital allocation, this one of $300 million, from its institutional investment partner, Almanac Realty Investors, a business unit of Neuberger Berman.

This new round of equity capital will target acquisitions of industrial parks and truck logistics facilities throughout the Southeast, Texas and the West Coast, including strategic submarkets in Southern California.

A CIP spokesperson told Commercial Property Executive that the company is looking for three truck logistics property types: trailer storage, truck service bay facilities and transfer stations (cross-dock buildings for distribution), or a combination of these.

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Along with an allocation of $380 million made in 2019 by a prior investment vehicle, funds managed by Almanac have now committed to invest up to an aggregate $680 million of capital into the CIP platform as an institutional investment partner.

Since forming the Almanac partnership in October 2019, CIP has acquired a portfolio of industrial assets totaling more than $1.15 billion in such markets as Atlanta, Charlotte, N.C., Tampa, Fla., Dallas, as well as in California’s Inland Empire and East Bay areas.

That total includes about 500,000 square feet of new construction valued at more than $88 million in Atlanta and Charlotte. Most recently, the venture purchased a 352,300-square-foot industrial and technology park in Fremont, Calif., and a 180,400-square-foot project in Tampa., for a combined $131 million.

Modest steps to growth

David Haltiner, managing director at Almanac, told CPE that the small- and mid-bay industrial sector, that is, projects with bay sizes ranging from 1,000 to 5,000 square feet, up to 50,000 square feet, are a focus for CIP and Almanac, in addition to truck logistics facilities already mentioned.

In a prepared statement, Eric Smyth, CEO of CIP Real Estate, noted his company plans an aggressive acquisition program to basically double its portfolio in the next two or three years, to more than $2.5 billion.

Barely more than a year ago, Smyth spoke with Commercial Property Executive about CIP’s plans for capital improvements at some then-recent acquisitions, rent growth in the company’s core markets, and trends in tenant demand for industrial space.