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. According to BLP, there are two key components driving the company’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 and 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.