Longpoint Closes Institutional Fund at $940M 

Aventura Industrial Center, a two-building portfolio in Miami, a Fund II investment by Longpoint. Image courtesy of Longpoint

Longpoint has reached the final close of its third institutional fund, Longpoint Fund III L.P., which was oversubscribed at about $940 million of commitments, substantially beyond its original target of $750 million.

The fund reportedly will focus on the acquisition of well-located, underutilized industrial assets in major U.S. markets at attractive prices. More specifically, the proceeds will target small to mid-sized investments in primary U.S. markets, including Atlanta, Boston, Dallas, New York/New Jersey, South Florida, Southern California and Baltimore/Washington.

Hodes Weill Securities LLC was the fund’s placement agent, securing investments from a mix of global institutions, including sovereign wealth funds, public and corporate pensions, insurance companies, endowments, foundations and family offices.

READ ALSO: What’s Ahead for Industrial?

The fund will serve logistics clients by creating functional warehouse nodes close to population centers, Dwight Angelini, managing & founding partner at Longpoint, said in a prepared statement.

He added that today’s supply chain took shape in the middle of the 20th century, and that in 1956, when President Dwight Eisenhower signed into law the Federal Highway Act, the first intermodal shipping container made its maiden voyage from Newark, N.J., to Houston.

Since then, Angelini continued, advances in technology, changing consumer shopping patterns and the need for a resilient and efficient supply chain have generated significant investment opportunities in the industrial sector.

The fund’s goal, he explained, is to purchase underperforming industrial assets in supply-constrained infill locations and upgrade them to meet modern logistical standards.

Longpoint launched the fund last year and collected $323.5 million in the initial close in December 2022. The investment vehicle has completed nine acquisitions to date, a Longpoint spokesperson told Commercial Property Executive, including:

• John Reed Commerce Center, a 275,600-square-foot, 15-building industrial park in City of Industry, Calif.
• 205 Jackson St., a 32,000-square-foot cold storage distribution facility in Englewood, N.J.
• 4520 36th St., a 94,500-square-foot infill industrial asset in Orlando, Fla.

Since Longpoint’s inception in 2015, the vertically integrated private equity real estate firm has invested approximately $2.1 billion across more than 100 transactions.

Diverse investments

Along with the industrial side, Longpoint has also been active in retail. In March, the company’s Specialty Grocer Fund I LP completed its final closing at $225 million in capital commitments, surpassing its initial $200 million target.

Later that month, Longpoint acquired Cardenas Marketplace, a 66,006-square-foot shopping center in Montclair, Calif., in the Inland Empire. CBRE represented the seller, Pacific Properties Group, in the $22.7 million transaction.