Al. Neyer Raises $110M With First Fund

Al. Neyer industrial building planned on Elijah Creek Road and Petersburg Road in Hebron, KY. Rendering courtesy of Al. Neyer

Al. Neyer has closed its first industrial real estate investment fund at $110 million, raised through 105 investors.

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Jen Weingartner, Al. Neyer’s vice president of capital and investor relations, told Commercial Property Executive that the Al. Neyer Industrial Fund I LLC was opened to long-term investment partners and new investors in January 2020. The fund has since closed on April 1 and surpassed its initial goal to raise $100 million. 

The funds will be deployed to develop approximately $300 million of Class A industrial projects that will be managed by Al. Neyer. Those projects will be mainly bulk product, rear load and single load product and last-mile industrial developments in Cincinnati, Pittsburgh, Nashville, Tenn., and Raleigh, N.C., where the company has offices. The fund will also consider markets within 300 miles of Al. Neyer’s existing footprint.

Weingartner told CPE that the company is expecting to deploy all the equity in 12 to 18 months and has plans to launch additional funds once all the equity is used.

Strong growth and demand

Other companies have also launched funds that focus on industrial properties in the U.S. due to the sector’s growing demand. In November, RMR Group closed a $680 million investment vehicle that would acquire industrial and logistics properties in the U.S. Earlier that year, Nuveen raised $660 million for its U.S. Cities Industrial Fund in March 2020.

For Al. Neyer, creating a real estate investment fund was something the company had been discussing for a while, Weingartner told CPE. Prior to Al. Neyer’s fund, Weingartner told CPE that the company raised equity on a project-by-project basis. However, she attributed the creation of the fund to the growth of Al. Neyer, combined with the rising demand for e-commerce and manufacturing space.

According to Weingartner, Al. Neyer’s growth over the years has resulted in an industrial development pipeline that currently includes approximately 20 projects totaling a potential 12 million square feet. Weingartner also told CPE that the fund will give investors the opportunity to invest in a diverse range of markets and industrial product types, while also letting the Al. Neyer team efficiently develop projects in certain markets.