The California-based real estate investment company plans to continue aggressive acquisitions, including in Texas, one of its target markets.
Irvine, Calif.-based CIP Real Estate has acquired $1.15 billion in 2019, including real estate in Dallas-Fort Worth, thanks to a $380 million equity investment from funds managed by Almanac Realty Investors. We have amassed an industrial portfolio that exceeds the dollar value.
Almanac, a division of Neuberger Berman that currently provides more than $7.9 billion in capital to companies across North America, has invested an additional $300 million in capital in CIP.
The new investment round will focus on industrial parks and truck logistics facilities on the West Coast and Southeastern United States, as well as in Texas.
According to CIP CEO and Principal Eric Smith, the company plans to significantly grow its industrial platform in the DFW market, which includes both multi-tenant industrial parks and truck logistics facilities.
“It's going to be difficult to get $1 billion in industrial products in two to three years without focusing on D-FW,” Smith said in an emailed response to questions.
Texas, particularly Dallas-Fort Worth, has seen some movement in recent years with early CIP and yearbook partnerships.
In 2021, CIP acquired a North Texas industrial portfolio consisting of more than 80 buildings and more than 550 tenants for $265 million as part of its partnership with Almanac. CIP acquired properties totaling 2.2 million square feet in Dallas, Richardson, Addison, Plano, Allen and Carrollton from Momentum Commercial Realty.
The company also acquired a three-building industrial portfolio totaling 168,600 square feet from Dallas-based MoxieBridge in 2020 for approximately $38 million. Accommodations are located in Dallas, Fort Worth, and Grand Prairie.
“The company has been fortunate to acquire some very attractive assets over the past three years and has exceeded expectations, including some opportunistic sales of office and ‘heavy flex’ products from 2021 to 2024.” We made money,” Smith said.
With the new fund, CIP hopes to “essentially double” its portfolio and grow its assets to more than $2.5 billion over the next two to three years.
CIP is located at 1201 Richardson Drive in North Texas and employs six people. The company handles most of its own property management and also handles some of its own leasing.
