MINNEAPOLIS--(BUSINESS WIRE)--Meritex announces the close of the commitment period for Meritex Industrial Fund IV (the “Fund”) with the Fund achieving its target of $100 million in investor commitments. To date, the Fund has acquired approximately $92 million in industrial properties in four target markets – Atlanta, Kansas City, Minneapolis and Phoenix. The Fund has also committed approximately $69.5 million to three industrial property developments in Houston, Indianapolis and Kansas City. Altogether, the portfolio comprises approximately 1.37 million square feet of industrial properties across six target markets.
Initial Fund acquisitions include four infill industrial properties that were acquired through off-market and auction transactions totaling nine buildings and approximately 825,000 square feet in Marietta (Atlanta), Georgia; Lenexa (Kansas City), Kansas; Plymouth (Minneapolis), Minnesota; and Tempe (Phoenix), Arizona, providing immediate cash flow at favorable property level returns.
The infill industrial properties under development were sourced through off-market transactions, totaling five buildings and approximately 432,000 square feet in Houston, Texas, Indianapolis, Indiana, and Lenexa (Kansas City), Kansas delivering strong cash yields upon stabilization and enhancing overall Fund returns.
“We are excited to have achieved our commitment target of $100 million in Fund IV with a diverse group of investors who align with our goals of achieving solid long-term cash yield-driven returns through disciplined property selection, best in-class property management and conservative financing,” says Mark Spotts, Chief Financial Officer of the Fund sponsor, Meritex. “With a fully integrated sponsor, the Fund benefits from a seasoned leadership team, our national presence of on-the-ground expertise and a multi-generational track record.”
With more than 106 years of industrial real estate management and ownership, Meritex prides itself on being disciplined, well-researched investors. The Fund will follow the same investment thesis and source investment opportunities that provide a balance of meaningful annual cash returns, and long-term real estate appreciation.
“Meritex believes in the strength of our infill industrial portfolio, our team, and the company's long-term vision,” says Tom Hotovec, President. “We have committed 20 percent of the equity in the Fund and look forward to participating alongside our investors.”
The Fund is targeting approximately $250 million in industrial investment properties within ten U.S. target markets.
About The Meritex Company
Meritex is a 106-year-old, privately held, real estate investment and management firm focused on owning, managing, acquiring, and developing infill industrial properties. Meritex’ strategy is to invest in targeted major regional U.S. industrial markets which possess strong economic, demographic and real estate fundamentals, as determined by its research methodology. Meritex owns and manages a portfolio of 106 industrial properties across nine major U.S. markets consisting of approximately 11.7 square feet. For more information, please contact Mark Spotts, Chief Financial Officer at Meritex (email@example.com)