Berkeley Raises $611M for Small Bay Industrial Fund
Berkeley Partners has raised more than the originally forecasted $500 million for its Value Industrial Fund VI, L.P. The actual amount turned out to be $610.5 million, with the vehicle targeting investments for infill light industrial assets.
According to Berkeley, Fund VI is more than 30 percent called (as of now), and a portfolio of seed assets has been formed. The fund is seeking opportunities in regions where supply remains limited and key for local economies and tenants across the U.S. The goal for Berkeley is to "deliver consistent, attractive risk-adjusted returns for its investors," according to a statement by the asset manager.
"We are grateful to our limited partners for their conviction and trust in Berkeley Partners," Aaron Snegg, founding partner of Berkeley, said in a statement.
"Their support reflects the confidence we've earned through our disciplined investment thesis, our track record in the light industrial sector, and the long-term relationships we have built with our investors."
For about two decades, Berkeley has been investing in the light industrial space. The San Francisco-based firm now manages, through 14 markets, more than 11 million square feet of product in the sector.
Meanwhile, also this week, Investcorp made headlines for its $365 million industrial portfolio purchase. A big chunk of the portfolio relates to 23 light industrial properties across Columbus, Cincinnati and Cleveland.
While industrial as a whole faces uncertainties with global trade policy at the forefront, investors have been attracted to small-bay properties. A recent BKM Capital Partners white paper revealed that warehouses taking up less than 100,000 square feet posted 3.9% vacancy compared with 6.7% for larger facilities in 2024. BKM attributed the strong performance in the segment to e-commerce.
Source: GlobeSt/ALM