Bridge Industrial and the Canada Pension Plan Investment Board have announced a $1.1 billion joint venture to develop industrial properties in select supply-constrained markets across the US.
CPP Investments will own a 95% stake in the joint venture and Bridge will own the remaining 5%.
The partnership will focus on developing industrial assets for long-term ownership in core US markets and includes a 2.6 million square foot development in Doral, near Miami.
The deal is thelatest in a string of big money partnerships focusing on industrial assets. Earlier this month, two foreign institutional investors gathered billions of dollars to target the US industrial market, according to two separate announcements that were made almost simultaneously.
Industrial sales volume through the end of November surpassed 2020’s year-end total, with $51.2 billion in deals closed. According to CommercialEdge, the average sale price of industrial assets is now at $110 per square foot, a 25% increase over 2020 figures. That average price has also increased every quarter so far this year, from $96 psf in Q1 to $108 in Q2 and $120 in Q3.