Rockpoint Group and BEB Capital form $1 billion industrial-focused joint venture

Port Washington, NY BEB Capital (BEB), a leading investor and developer of industrial, office and multifamily assets throughout the East Coast, formed a programmatic joint venture with Rockpoint Group, a real estate private equity firm. The JV will target an investment pipeline of up to $1 billion of industrial assets in the Northeastern United States, with a primary focus in Long Island. The partnership has assembled nearly 660,000 s/f of industrial assets to date, including the recent Long Island, NY acquisitions of 44 Ramsey Rd. in Shirley and 100 Marcus Blvd. in Hauppauge.

BEB’s decades of hands-on real estate management and investment experience has enabled the firm to forge strong relationships with longtime industrial users and tenants in the Northeastern United States. Leveraging BEB’s experience with Rockpoint’s fundamental value approach to investing, the joint venture is systematically aggregating a diverse industrial portfolio in close proximity to strategic corridors and infrastructure assets. The portfolio thus far consists of nearly 100% leased industrial assets with a diversified tenant roster of credit and regional logistics, distribution and warehousing, and e-commerce tenants.

“The U.S. industrial and last-mile logistics sector continues to be red-hot, and with the growth of e-commerce accelerating during the pandemic, we expect there to be continued strong demand in this asset class,” said Lee Brodsky, CEO of BEB. “Together with Rockpoint, an institutional partner that aligns with our entrepreneurial values and market outlook, we’re poised to continue to grow a value-add portfolio that will capitalize on the economic tailwinds driving the real estate industry and broader economy forward.”

E-commerce companies require, on average, 1.25 million s/f per $1 billion of online sales, three times that of traditional retailers. The domestic e-commerce market alone will require upwards of an additional 250 million s/f of industrial space in the next five years just to keep pace with the growing demand, an exponential increase in utilization.