How One Industrial Fund Is Targeting a Wider Investor Base
CRG is trying to connect with family offices and high-net-worth investors, as well as underrepresented investor groups, for its new logistics fund.
August 12, 2021 | Patricia Kirk | Wealth Management
With the outlook for industrial real estate remaining as bright as ever, it seems every day brings an announcement of a new industrial investment fund. CRG, the real estate investment and development arm of Chicago-based real estate and construction firm Clayco, is among the most recent slew of firms who are following this trend. In late July, CRG launched its U.S. Logistics Fund II (UALF II), with the goal of developing $1.5 billion’s worth of new e-commerce and distributions centers across the U.S. over the next three years.
This is not the first such venture for the company—in 2018, CRG launched U.S. Logistics Fund I, which funded the development of $421 million in logistics facilities. When the sale of the final asset in that fund is completed, CRG estimates it will deliver a 23 percent net IRR to its limited partners.
The current fund is open to a wide range of investors, including high-net-worth individuals and family offices, a recent change in strategy for the company which in the past has largely relied on equity-raising from institutional investors. In addition, CRG has set a goal of reaching 10 percent of qualified investors among women, people of color and other groups that have traditionally been under-represented in commercial real estate funds.
