- The City Pension Fund for Firefighters and Police Officers in Pembroke Pines committed $5 million to MAGCP Industrial Fund III, funded from its Corient fixed income account.
- The fund buys industrial and manufacturing facilities from U.S. operators and leases them back on single-tenant, triple-net terms, and had raised $41.7 million from 205 investors as of July 30.
- MAG manages $1.2 billion across 93 properties in 36 states, and its Fund II sold six Midwest manufacturing properties for about $89 million in July.
A Florida firefighter and police pension plan committed $5 million to MAG Capital Partners’ industrial fund, according to AltsWire.
The City Pension Fund for Firefighters and Police Officers in Pembroke Pines is investing in MAGCP Industrial Fund III, sponsored by the Dallas-based firm.
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How the Board Got There
In March, the board voted unanimously to hire Ares Management and MAG Capital Partners as real estate managers. The decision followed a request for proposals. Ares received $10 million, while MAG received $5 million.
Trustees said they wanted to invest more in industrial real estate. Then, in June, the board voted unanimously to fund the MAG commitment through the plan’s Corient fixed income account. The plan will also reduce its BlackRock Real Estate holdings.
Sale-Leaseback Strategy
The fund buys industrial and manufacturing facilities from U.S. operators. It then leases those properties back on a single-tenant, triple-net basis.
This structure also fits within the broader industrial net lease market. Other managers are raising capital for similar strategies.
As of July 30, the fund had raised $41.7 million from 205 investors. The offering uses Rule 506(c) of Regulation D and is open to accredited individuals, family offices and institutions.
The fund completed its first sale in September 2024.
MAG’s Track Record
MAG was founded in 2015 by principals Dax T.S. Mitchell, Andrew Gi and Neil Wahlgren. The firm focuses on sale-leasebacks and value-add deals with U.S. manufacturing and food production companies.
As of June 30, MAG managed $1.2 billion in gross asset value. The portfolio included 93 properties across 36 states.
In July, Fund II sold six Midwest manufacturing properties. The portfolio totaled 1.37 million square feet. Fundamental Income Properties, a Starwood Property Trust subsidiary, bought the assets for about $89 million.
Why It Matters
The commitment adds to a fund that had raised $41.7 million as of July 30. That figure remains small compared with larger industrial-focused fund closes, such as Stonelake’s $1 billion raise.
For manufacturers, sale-leasebacks provide another source of capital. They allow companies to turn owned real estate into cash.
What’s Next
Mitchell said MAG looks forward to a long relationship with the plan. Meanwhile, the firm will put the new capital to work in industrial assets leased to American manufacturers.
