A Focused Investment Strategy
ATTRACTIVE SUPPLY-DEMAND DYNAMICS DRIVEN BY A SHORTAGE OF INFILL LAND FOR DEVELOPMENT AND SURGING E-COMMERCE DEMAND
The secular shift in the supply chain away from “brick and mortar” retail has e-commerce companies competing for the quickest delivery times, driving demands for smaller infill properties close to major markets. These “Infill Logistics” locations near major cities lack available land for development, restricting new supply and creating a favorable investment landscape.
01.
Infill Logistics Assets
small-to-mid-sized industrial assets ($3 to $15 million in equity) critical to the supply chain
E-commerce companies are seeking industrial assets close to major markets to compete for the shortest delivery times to consumers and to reduce transportation costs.
Consumers are increasingly making purchases based on estimated delivery times since the emergence of same-day and next-day delivery
Transportation comprises the majority (45%) of total supply chain costs for e-commerce companies, whereas real estate makes up only a small fraction (5%)
NorthBridge capitalizes on the modern supply chain as e-commerce companies shift operations to industrial assets closer to major markets
Source : Prologis 2019 Investor Forum.
02.
Targeted Geographic Footprint
densely populated major markets on the east coast
East Coast U.S. infill markets maintain significantly higher demand-to-supply ratios than other markets, leading to outsized rent growth.
Highest regional concentration of population in the U.S.
High land costs that limit new warehouse supply
Largest concentration of high-income areas in the U.S.
Redevelopment into higher and better uses (housing, office, etc.) leads to the demolition of older supply
Heavy traffic and long drive times increase tenant demand for logistics assets near population centers
Source : US Census Bureau, by county. (map: socviz.co.)
03.
Proprietary Sourcing Network
leveraging deep network for off-market opportunities
NorthBridge has proactively sourced over 75% of its fund investments through off-market transactions.
Leverage proprietary sourcing network to acquire one-off transactions that require $3 to $15 million of equity
Utilize deep network of owners, leasing brokers, tenants, and other relationships to generate deal flow
Capitalize on off-market opportunities in a fragmented asset class managed mostly by owner-users or local private investors that tend to be passive owners
Identify Assets
1 ) Survey target MSA for all industrial assets
(10,000-25,000 assets)
2 ) Catalog target assets by geography
(5,000-10,000 assets)
3 ) Target by building attributes: parking, docks, clear height
(2,500-5,000 assets)
4 ) Proactively reach out
(500+ assets)
Engage Network
Direct outreach | Leasing brokers | Single broker firms | Estate planners | Tenant relationships | Lawyers | Accountants | Distressed situations
Close
04.
Creative Execution to Unlock Value
reposition, modernize, develop, relocate, change use
Our vertically-integrated team unlocks value through repositioning, modernizing, tenant relocations, change of use, building expansions, or select ground-up development.
Apply the team’s broad experience to assets with complex ownership structures to accommodate the needs of non-institutional sellers (estate planning, business sales, 1031 exchanges, etc.)
Vertically-integrated team with in-house acquisitions, asset management, and development capabilities
$2.3 billion of real estate AUM*
*December 2022