NorthBridge’s New Fund Nears $950M
The investment vehicle is targeting logistics properties in major East Coast markets.
NorthBridge Partners has closed its largest fund to date, raising nearly $950 million which will be used to acquire or develop small to midsize infill logistics assets in coastal U.S. markets.
NB Partners Fund IV LP surpassed the original $800 million fundraising target. Fund IV’s limited partners include a diverse mix of public and private pensions, endowments and foundations, insurance companies, sovereign wealth funds, asset managers, family offices and high-net-worth individuals.
New York-based Park Madison Partners was the placement agent for the fund. NorthBridge and Park Madison Partners reached the final close of NB Partners Fund III LP, which had a $500 million hard cap, in April 2021.
Boston-based NorthBridge launched its logistics strategy in 2014 with the mission of acquiring, modernizing and developing small to midsize final-mile logistics assets on the East Coast. Fund IV targets markets that benefit from high population density, significant port activity or clusters of advanced manufacturing that benefit from reshoring trends.
Dean Atkins, NorthBridge managing partner & general counsel, told Commercial Property Executive the firm has deployed approximately $200 million of equity on purchases to date.
“We believe we’re sourcing attractive cash-flowing opportunities from sellers in need of liquidity. We’re evaluating vacant assets and speculative development as well, though the bar is high for those deal profiles. Locations have been concentrated in NorthBridge’s core infill markets along the East Coast,” Atkins said.
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Atkins declined to release specific details on deals made through Fund IV so far but did note the fund has been “opportunistically making investments for over a year that we believe are representative of the attractive acquisition environment given dislocated capital markets.”
Atkins said recent acquisitions have been consistent with NorthBridge’s long-standing investment approach, adding they are a diverse array of property uses with an emphasis on last-mile distribution.
“We’re acquiring small and midsize infill logistics properties located in close proximity to major East Coast population centers and ports,” he said. “In certain markets we’re seeing an uptick in advanced manufacturing uses that benefit from reshoring trends.”
Massachusetts deal
One acquisition was made in February in Devens, Mass. According to CommercialEdge data, Northbridge purchased 36 Saratoga Blvd., the home of New England Sheets, a corrugated sheet paper manufacturer, for $20.5 million. The seller was Link Logistics, a Blackstone subsidiary. Link acquired the asset, which includes a 162,000-square-foot industrial building, in May 2016 for $9.51 million, according to MassDevelopment property records cited the Worcester Business Journal.
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