IP Capital Partners announced on Mar. 10 the launch of a $250 million fund aimed at acquiring industrial properties in the Southeast United States, responding to increased demand for domestic manufacturing space.
The new IPCP Southeast Industrial Fund II targets $1 billion in purchases across Florida, Georgia, Tennessee, and North and South Carolina. The fund will focus on mid-sized properties ranging from 150,000 to 300,000 square feet and priced between $15 million and $50 million. Jason Isaacson, president of IP Capital Partners, said the fund is designed to capitalize on opportunities that larger institutional investors often overlook. “This is a small and nimble income and growth fund,” Isaacson said. A “large institutional fund is too big to buy these mid-market type sizes, which ironically to us is the sweet spot of demand. By being small and nimble, it allows us to take advantage of these institutional blind spots.”
The initial seed round for the fund raised $37 million, surpassing its original goal of $25 million. The next fundraising close is scheduled for July 1 as the firm seeks to raise additional capital up to a cap of $300 million. The fund is currently available on global fintech platform iCapital.
Isaacson explained that IPCP Southeast Industrial Fund II will target properties with five- to eight-year lease terms and generally hold them until leases roll over or market conditions allow for rent increases before selling. The focus includes supply-chain logistics assets such as manufacturing facilities, bulk distribution centers, cold storage warehouses, and last-mile distribution centers.
“The supply chain is being decentralized and because of that, it needs smaller, more nimble warehouses. The proliferation of demand for spaces is concentrated in smaller bulk formats,” Isaacson said. He added that having more warehouses closer to consumers helps reduce transportation and labor costs: “Real estate is one of the cheapest elements of the supply chain, with transportation being one of the most expensive.” Part of IP Capital’s strategy relies on continued growth in domestic production due in part to recent tariff policies and legislation like last year’s “One Big Beautiful Bill.” Isaacson noted that many tenants are seeking greater control by relocating production back to the U.S., aiming to avoid future supply-chain disruptions similar to those experienced during the pandemic or resulting from tariffs.
The company cited an example from its portfolio where a tenant moved tire repair equipment manufacturing from Shanghai to Nashville through a sale-leaseback deal with SEIF I. IP Capital also plans joint ventures within this new fund while managing operations directly in order to eliminate double fees for investors.
Previous funds managed by IP Capital include IPCP Florida Realty Value Fund IV—an opportunistic value-add vehicle—and Southeast Industrial Fund I (SEIF I), which raised about $150 million and acquired nearly 4 million square feet across roughly $400 million in purchases. Last year SEIF I bought a cold storage facility near Miami International Airport for $25.7 million.
