Matterhorn Venture, TPG Launch $900M Industrial JV
The partners are targeting assets in the Chicago area and surrounding markets.
Matterhorn Venture Partners and TPG Angelo Gordon U.S. Real Estate have formed a joint venture to acquire a portfolio of industrial value-add assets over the next four years. The partners will focus on the metro Chicago area and surrounding Midwest markets.
The joint venture’s initial equity commitment is $300 million, with total buying power of more than $900 million. The partners are seeking industrial value-add acquisitions and plan property lease-ups, capital investment to reposition assets, sale-leasebacks and industrial condo aggregation.
The firms recently closed on the acquisition of two suburban Chicago industrial assets to kick off the joint venture. The two properties, which are vacant, total $30 million in capitalized value.
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One asset is the 184,902-square-foot 2440 Pratt Ave. in Elk Grove Village, Ill., a northwest Chicago suburb. The seller was Link Logistics, which acquired the property in 2020 for $7.6 million from CenterPoint as part of a $400 million industrial portfolio transaction incorporating 5.9 million square feet, Yardi Matrix reports. 2440 Pratt Ave. was developed in 1981.
The other asset is a 47,175-square-foot light industrial building at 1000 N. Main St. in Lombard, Ill. The property, dating from 1987, was also sold by Link Logistics, which acquired it in 2017 for $3.8 million from High Street Logistics Properties, according to the same source.
Chicago-based Matterhorn Venture Partners focuses on acquiring and managing industrial assets nationwide. The company’s portfolio encompasses more than 700,000 square feet. TPG is a global alternative asset management firm with $303 billion of assets under management, including private equity, credit and real estate.
Some bargains in Chicago’s industrial market
Chicago ranks seventh among the nation’s top markets for industrial development by square footage, with more than 8.9 million square feet under development as of September, according to Yardi Matrix. And since Chicago’s industrial market is so large (more than a billion square feet), as a percentage of existing stock, Chicago’s industrial development growth during the same time frame doesn’t even make the top 10.
Average rents in the Chicago market stood at $6.63 per square foot as of September, a 2.5 percent increase since a year earlier. Compared with such markets as the Bay Area, New Jersey and the Inland Empire in California, all of which have average industrial rents above $10 per square foot, Chicago is relatively inexpensive, and on par with Atlanta and Houston, Yardi Matrix noted.
Investors are still interested in the Chicago industrial market, but again compared to the vast size of the market, investment was middling. The industrial investment total for Chicago for the first nine months of 2025 was $1.9 billion, which was less than Detroit, Dallas, Phoenix and New Jersey. Investors paid an average of $91 per square foot for industrial space in Chicago, one of the lowest prices in the nation, on par with Houston and Kansas City.
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