CapRock Closes Second Funding Round With $180M

7200 W. Roosevelt St. Image courtesy of CapRock Partners

CapRock Partners has had a second closing of its CapRock Partners Industrial Value-Add Fund III, now totaling more than $180 million of committed capital in the fund and co-investment vehicles. The firm is focusing on the acquisition of middle-market, value-add industrial properties ranging from $20 million to $50 million in California, Nevada and Arizona.

The second closing comes about a month after CapRock, a Newport Beach, Calif.-based private industrial investment and development firm, announced its first closing of the fund, which totaled more than $150 million of committed capital in the fund and co-invest vehicles at that time. CapRock said the fund—the firm’s fifth overall and third in its industrial value-add series—includes commitments from institutional investors, pension funds and family offices. 

Jon Pharris, co-founder & president of CapRock Partners, said in a prepared statement the firm would be leveraging its experience and longstanding industry relationships to access a robust pipeline of value-add investments. California, Nevada and Arizona are consistent with the firm’s core investment strategy targeting West Coast port markets and other adjacent high-growth major metropolitan areas that reap the economic benefits of the port markets.

Acquisitions outlined

CapRock previously said the fund had acquired three projects and had multiple additional projects in escrow. Late last year, the fund purchased Walnut Business Park, a 94,800-square-foot, Class A, multi-tenant industrial complex in the North Las Vegas submarket of Las Vegas, Nev., for $7.9 million from MCA Realty. Located at 3020-3060 N. Walnut Road, the two-building property is about 3 miles from Interstate 15 and 10 miles from McCarran International Airport. The firm noted it had purchased the property with significant near-term rollover and planned to renovate the industrial suites to capitalize on the lack of available units in the sub-10,000-square-foot-range in the submarket. CapRock stated it would be acquiring the adjacent 5 acres and planned to start constructing a new 100,000-square-foot Class A industrial building on the site this summer.

Other acquisitions included:

• 1855 Dornoch Court in San Diego: The 210,130-square-foot industrial building in the Otay Mesa submarket changed hands last summer. CapRock is renovating the property including removing second-story office space and adding seven dock-high doors and reconfiguring the parcel to add more parking stalls. The site has ample power, 26- to 28-foot clear heights, 13 dock doors and one grade-level ramp and is best suited for warehouse/distribution and light manufacturing uses.
• 7200 W. Roosevelt St. in Phoenix: The firm acquired the 216,880-square-foot Class A building earlier this year in an off-market transaction. It is located in the Southwest submarket of Phoenix, in the proximity of four major freeways and high-quality neighboring tenants, such as Amazon, Target, FedEx and Home Depot.

Development plans

CapRock said it also expects to begin construction on several Class A industrial projects that are more than 1 million square feet each, including Phase II of the 11-building Colony Commerce Center project in Ontario, Calif. Located in the state’s hot Inland Empire industrial market, the $450 million Colony Commerce Center is one of the largest spec industrial projects in the U.S. CapRock is the developer on behalf of Ivanhoé Cambridge, which acquired two large parcels of land from CapRock in August 2018. The first phase, which began construction in October 2018, was about 1.3 million square feet. Phase II is expected to be approximately 1.7 million square feet. Colony Commerce Center is close to Ontario International Airport and highways I-15, I-10, SR-60, SR-91 and SR-71.