NorthBridge Partners Raises $950M Fund for Infill Logistics Assets in Coastal US

NorthBridge Partners recently concluded its most substantial fund yet, securing close to $950 million. The funds are earmarked for the acquisition and development of small to midsize infill logistics assets within coastal U.S. markets. NB Partners Fund IV LP exceeded its initial $800 million target. A wide array of investors, including public and private pensions, endowments, insurance companies, and high-net-worth individuals, contributed to the fund.

Park Madison Partners and Fund III Close

Park Madison Partners, based in New York, acted as the placement agent for the fund. NorthBridge and Park Madison Partners previously collaborated on NB Partners Fund III LP, reaching its final close with a $500 million hard cap in April 2021.

NorthBridge's Logistics Strategy

Boston-based NorthBridge initiated its logistics strategy in 2014, focusing on the acquisition, modernization, and development of final-mile logistics assets along the East Coast. Fund IV targets markets characterized by high population density, significant port activity, or clusters of advanced manufacturing, which benefit from reshoring trends.

Deployment of Equity and Investment Approach

Dean Atkins, NorthBridge's managing partner and general counsel, stated that the firm has deployed around $200 million in equity for purchases thus far. Atkins emphasized the firm's strategy of seeking cash-flowing opportunities from sellers requiring liquidity. The firm also evaluates vacant assets and speculative development opportunities, albeit with stringent criteria. Investments have primarily concentrated in NorthBridge's core infill markets along the East Coast.

Recent Acquisitions and Investment Focus

Atkins refrained from disclosing specific details on Fund IV's investments but indicated that the fund has been making opportunistic investments over the past year. Recent acquisitions align with NorthBridge's established investment approach, emphasizing a diverse array of property uses with a focus on last-mile distribution.

Massachusetts Deal

One notable acquisition occurred in February in Devens, Mass., where NorthBridge purchased 36 Saratoga Blvd. for $20.5 million. The property, previously home to New England Sheets, a corrugated sheet paper manufacturer, was acquired from Link Logistics, a Blackstone subsidiary. This acquisition reflects NorthBridge's interest in acquiring small and midsize infill logistics properties near major East Coast population centers and ports, with an increasing emphasis on advanced manufacturing benefiting from reshoring trends.