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 up to $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 funds may 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 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 toward its cap of $300 million. The fund is available through global fintech platform iCapital.
Isaacson said the strategy involves targeting properties with five- to eight-year lease terms and holding them until leases roll over or market conditions allow for rent increases before selling. SEIF II will invest in facilities related to supply-chain logistics such as manufacturing plants, bulk distribution centers, cold storage warehouses, and last-mile distribution hubs.
“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 for distributors since real estate remains one of the least expensive elements in the supply chain.
Isaacson also pointed out that part of the investment thesis relies on continued growth in domestic production due partly to recent tariff policies and legislative incentives like last year’s “One Big Beautiful Bill.” He noted examples from IP Capital’s own portfolio where tenants have relocated manufacturing operations from overseas back into U.S.-based facilities.
The company plans joint ventures on some investments while managing operations directly to avoid double fees for investors. Previous funds managed by IP Capital include IPCP Florida Realty Value Fund IV and Southeast Industrial Fund I—the latter raised about $150 million used for nearly $400 million in acquisitions totaling almost four million square feet.
