NorthBridge Closes Latest Fund at $500M Hard Cap

Rob Kohn, Partner, Park Madison Partners. Image courtesy of Park Madison Partners

 NorthBridge Partners of Boston and New York City-based Park Madison Partners have reached the final close of NB Partners Fund III LP, at the fund’s $500 million hard cap.

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Investors in the fund, which was oversubscribed, included a mix of public and private pension funds, foundations, asset managers, family offices and high-net-worth individuals.

NorthBridge and Park Madison launched this fund in March 2020, when the pandemic struck. As a result, the fundraising effort shifted to an almost entirely virtual format, Park Madison Partners’ Rob Kohn said in a prepared statement. According to Kohn, the success despite this challenge is a testament to NorthBridge’s talent as an investment manager in the final-mile industrial sector and to investors’ confidence in them as fiduciaries.    

NorthBridge launched its logistics strategy in 2014 with the mission of acquiring, modernizing and developing small- to mid-sized final-mile logistics assets on the East Coast. Fund III’s strategy is that of the prior two vehicles, targeting strategically located U.S. East Coast industrial assets that are critical to the modern e-commerce supply chain.

Large and small

In late February, NorthBridge reached an agreement under which Brookfield Asset Management’s new Real Estate Secondaries business would recapitalize NorthBridge’s East Coast last-mile industrial portfolio for $360 million. The 21-property, 2.3-million-square-foot collection consists of assets in markets with high barriers to entry and was 96 percent occupied at the time of the announcement.

NorthBridge retained an interest in the portfolio and continues to manage it day to day. As with NB Partners Fund III, Park Madison Partners was NorthBridge’s exclusive capital advisor.

Alongside the big deals, NorthBridge doesn’t disdain a smaller one if it’s a good fit. In March of last year, the company made a $15.5 million purchase of a 123,000-square-foot warehouse in Beltsville, Md. The fully occupied building was NorthBridge’s first acquisition in the Baltimore–Washington, D.C., metro area.