Cabot Properties Closes Largest Fund at $1.6B

Cabot Properties, an international private equity real estate firm, has closed Value Fund VII with a total of $1.57 billion in equity commitments—the firm’s largest fund to date. The vehicle, including leverage, will be used to acquire, develop and redevelop $3.5 billion of logistics assets in the U.S., Europe and Asia Pacific, with most of the capital being deployed in the U.S.

Fund VII focuses on acquiring, developing and redeveloping high-quality infill industrial assets in dynamic supply-constrained markets across top logistics markets. The fund will target investments mainly in multi-tenant buildings between 50,000 and 250,000 square feet.

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To date, the fund has already closed or committed $1.2 billion of capital across 30 markets including Chicago, Atlanta, Seattle, Amsterdam and Sydney. The initial investments consist of modern, highly functional logistics facilities located close to wealthy consumer bases and critical transportation infrastructure. Upon full deployment, the fund is expected to comprise approximately $3.5 billion in assets.

Franz Colloredo-Mansfeld, chairman & CEO of Cabot Properties, said in a prepared statement almost 90 percent of the commitments came from existing investors, many of whom have invested with Cabot for more than 20 years beginning with Value Fund I. He said the fund also attracted a number of new investors. He did not describe the composition of new or existing investors but did note it’s been a challenging time to raise capital.

Cabot deals

Boston-based Cabot Properties has invested more than $15 billion in logistics real estate, served more than 4,200 tenants and operated more than 1,600 buildings totaling more than 230 million square feet since its founding in 1986. The firm also has offices in Atlanta, Chicago, Dallas, Los Angeles, Amsterdam, London, Sydney and Tokyo.

In January, Cabot formed a joint venture with J.G. Petrucci Co. to develop a 320,250-square-foot industrial facility near Philadelphia in Feasterville-Trevose, Pa. Principal Asset Management provided a $35.7 million construction loan, according to public records. Scheduled for completion in the third quarter, the Class A warehouse is set to feature 36-foot clear heights, two drive-in doors, 55 dock-high loading doors and 50- by 54-foot column spacing. The property will also have 56 trailer stalls and 195 car vehicle parking spaces, along with about 2,500 square feet of office space.

In May 2022, Ryder Logistics leased 152,572 square feet of space at Cabot Miramar, a 304,428-square-foot distribution center in Broward County, Fla. The deal brought the Cabot-owned property in Miramar, Fla., to full occupancy.