LP surpasses leasing expectations in gateway markets
LOS ANGELES, December 5, 2022 – Bridge Logistics Properties (“BLP”), a subsidiary of Bridge Investment Group Holdings Inc. (NYSE: BRDG) ("Bridge"), has outperformed proforma base rent pricing by 15% and successfully leased more than 25% of its owned portfolio four months ahead of schedule.
“We are stabilizing our portfolio much faster than projected, which is a testament to our investment thesis,” said Brian Gagne, Chief Investment Officer and Senior Managing Director at BLP. “We invest in infill markets that exhibit a convergence of logistics infrastructure and unique population density, along with exceptional barriers to new supply. BLP believes that these markets are not only the most durable, but also offer outsized long-term value appreciation.”
The successful leasing of BLP’s portfolio is delivering cash flow to its investors earlier than expected. There are two key components driving BLP’s outperformance.
First, BLP’s multifaceted leadership team, which is comprised of industrial real estate veterans with prior tenure at Brookfield, Prologis, IDI Logistics, Duke, Hines and KTR Partners. Collectively they have secured more than $1.5 billion of real estate within difficult-to-access U.S. global gateway infill markets since the company’s inception. They also have an extensive record of uncovering value transactions in Tier 1 markets across the country, after closing over $20 billion in transaction volume and $10 billion in corporate and global M&As in their prior roles.
Second, the company’s regional coverage model, which allows its team to be in tune with tenant, ownership, broker, and investment dynamics across each of its target markets.
“Our regional market teams truly understand local tenant dynamics and that knowledge gives us an edge in our asset selection & portfolio construction. BLP looks to invest in assets and locations where tenant demand is deepest and comparable availabilities are limited. This year’s outperformance on leasing is the product of both strategic asset selection and continued demand tailwinds from e-commerce acceleration,” continued Gagne.
Since joining Bridge in June 2021, BLP has grown to 31 dedicated investment and business professionals across several disciplines and has offices in New York/New Jersey, Atlanta, Dallas and Los Angeles. Its fast-growing portfolio features 5.7 million square feet of existing warehouses and future developments and a pipeline of $384 million of assets under agreement, totaling an additional 2.4 million square feet.
BLP’s commitment to fostering strong relationships with key owners, brokers, developers, and tenants has led to 91% of its deals being sourced off-market or in selectively marketed situations, including 68% of deals accomplished on a completely off-market basis.
"The success we have had so far in leasing our portfolio is a proof of concept that our investment thesis is designed to generate returns no matter the conditions of the market. The boots on the ground approach of our investment teams is uncovering value in infill global gateway markets,” says Jay Cornforth, Chief Executive Officer of BLP.
BLP is a vertically integrated logistics real estate investment manager led by tenured, multi-disciplinary real estate veterans with experience navigating several economic environments over the past three decades. Its founding members and leadership team employ a disciplined investment strategy that is both cycle-tested and innovative. BLP is a value-focused investment manager that is highly collaborative with its institutional capital partners. Leveraging its deep local relationships and global vision, BLP uncovers and executes value transactions in targeted coastal and gateway markets in the U.S. and abroad. Across its four offices – in the Northeast, West, Southeast and Central United States – BLP has proven regional experience in acquisitions, opportunistic repositioning, and development of global logistics assets. Its steadfast focus on innovation and sustainable development promotes solutions that are both profitable and socially responsible. For more information, visit BridgeBLP.com.
About Bridge Investment Group
Bridge is a leading, vertically integrated real estate investment manager, diversified across specialized asset classes, with approximately $43.8 billion of assets under management as of September 30, 2022. Bridge combines its nationwide operating platform with dedicated teams of investment professionals focused on select U.S. real estate verticals: residential rental, office, development, logistics properties, net lease, real estate-backed credit, solar infrastructure and proptech.
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Bridge Investment Group Holdings Inc.
This press release has been prepared solely for informational purposes and is not to be construed as investment advice or an offer or a solicitation for the purchase or sale of any financial instrument, property, or investment. It is not intended to provide, and should not be relied upon for, tax, legal, or accounting advice. The opinions, estimates, forecasts, and statements of financial market trends are subject to change without notice due to changes in the market or economic conditions. We believe the information provided here is reliable, but do not warrant its accuracy or completeness. This press release contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which relate to future events or our future performance or financial condition. All statements other than statements of historical facts may be forward-looking statements. Accordingly, we caution you that any such forward-looking statements are based on our beliefs, assumptions and expectations as of the date made of our future performance, taking into account all information available to us at that time. These statements are not guarantees of future performance, conditions or results and involve a number of risks and uncertainties that are difficult to predict and beyond our control. Actual results may differ materially from those express or implied in the forward-looking statements as a result of a number of factors. Any forward-looking statement speaks only as of the date on which it is made. Neither Bridge nor BLP undertake any duty to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by law.