FCP is a real estate private equity platform that acquires and develops large tenant, institutional-quality industrial real estate in hard-to-access growth markets throughout Idaho, Montana, Wyoming, and South Dakota.
The US, specifically the Upper Rockies region, is experiencing a transformational shift in manufacturing and logistics investment, driving demand well past the supply of suitable large-scale industrial facilities.
While local population growth in mountain markets is driving record demand for housing with some spillover to industrial demand, the bulk of industrial demand is from larger regional and national employers expanding operations into the region. They are attracted to the lower cost of operations, business-friendly climates, and growing populations.
We acquire, develop, and operate Class A and B industrial assets around identified demand from regional and national tenants.
We use a hands-on, vertically integrated approach to optimize asset performance and provide investors with an institutional investment and reporting experience.
We use conservative leverage and tech-forward operations to aggregate smaller assets into stabilized portfolios to sell to institutional acquirers at a premium.
Our mission is to control the demand funnel for industrial real estate in the markets we cover by being each market’s largest and most sophisticated operator of capable assets.
We concentrate on high-quality national and regional tenant profiles to maximize economies-of-scale in leasing, reduce deal risk, and lower operating costs.
As our portfolio scale increases, demand increasingly directs itself to us directly and via broker partners. This demand visibility reduces our operating costs and lowers our risk of action in new acquisitions and developments.
Since we raise capital on a deal-by-deal basis, our investor network benefits from our aggregate portfolio benefits in each deal they invest in.
Our internal operating advantages allows us to maximize the universe of suitable tenants at higher rents with operate more efficiently to smaller scale operators.
We orient our decisions around a quasi-permanent hold strategy focused on maximizing after-tax returns. Our foundational investment principles:
Class B industrial assets with in-place rents and a clear ROI from light capital improvements and management improvements. Target Class B acquisitions include assets with a potential to serve next-gen demand and those where our operational leverage and leasing edge can increase performance.
Our value-add assets use moderate to conservative leverage (60%-75%) with target annual returns between 11% and 15% and strong unlevered interim yields.
We develop new industrial assets in supply-constrained markets and acquire existing single tenant assets to reposition as multi-tenant. Our preference (and current standard) is to partner with high-quality tenants who commit to leases sufficient to cover our carrying costs before delivery or acquisition.
This approach allows us to minimize risk, lower leverage costs, and eliminate lease up delays.
Development assets use varying levels of leverage (~50%) with target annualized returns over 20% with strong unlevered interim yields after stabilization.
Class A & B industrial assets with in-place rents and high-quality tenants. We opportunistically invest in light improvements to increase rent performance mainly when assets lack specific features next-gen tenants require.
Our core and core-plus assets use conservative leverage (45%-60%) with target annual returns of 8%-12% and strong unlevered yields. Core and core-plus assets derive a greater share of returns from cash flows than market appreciation.
Accredited investors who have joined our interest list are invited to invest as deals become available.