MDH Partners (MDH) today announces the expansion of its second fund from $575 million to $750 million of equity, with the existing eight investors upsizing their investments prorata. Fund II, which includes a mix of large university endowments and foundations, was raised in a record-setting two months and originally closed in April 2021. The fund is already 50% invested in dozens of industrial acquisitions and new developments across the country.

Fund II’s upsizing follows the news of the $1.26 billion sale of MDH’s Sunbelt Logistics Portfolio to a global institutional investor in June 2022. The portfolio was purchased through individual deals from MDH’s Fund I, which launched in 2019 and raised $350 million. The 58-property portfolio spans 9.7 million square feet and ten states primarily in the Southeast, and MDH retains an ownership stake in the portfolio while continuing to manage the properties on behalf of its new investor. To support the sale, the firm and the global institutional investor additionally secured five-year acquisition financing of $650 million from Truist Bank.

“Capital markets remain unsettled as we experience an inflationary economy and rising interest rates,” said Jeff Small, CEO of MDH Partners. “However, industrial leasing fundamentals continue to match historic peaks. Even with the current market volatility, our investors remain confident in our ability to strategically acquire and develop assets in key markets.”

According to JLL’s Q2 Industrial Outlook, national vacancy rates sit at just 3.4% with rent growth surpassing 21%. Across MDH’s portfolios in 30 markets nationwide, the strength of tenant activity continues in spite of economic headwinds. The firm’s occupancy exceeds 97% in over 30 million square feet.

MDH Partners has remained active this year, acquiring nearly five million square feet of industrial assets throughout the U.S. since last January. The firm recently expanded its portfolio into new markets including California, Minnesota, Maryland, Indiana, Illinois and Pennsylvania. The firm currently owns over 101 assets across 20 states.