IP Capital Partners is gearing up for its next wave of acquisitions, with a focus on distressed and value-add commercial properties, after completing the initial closing of IPCP Florida Realty Value Fund IV LP.

The initial closing yielded $95.4 million in equity to target industrial and office assets in the southeastern U.S., with an emphasis on Florida. The firm aims to increase the fund size to $125 million over the next 12 months.

Through joint ventures and leverage, IP Capital plans to acquire over $900 million worth of real estate in its target geography and asset classes.

“The Southeast’s booming population has raised demand for regional distribution centers, and increased global trade has made space near ports more valuable,” said firm Co-Founder and President Jason Isaacson. “We see opportunities to buy properties that began construction after the pandemic and are now coming into operation.”

Seventy percent of funds will be allocated to industrial properties in Florida, the Carolinas, Tennessee and Georgia, and the remainder will be divided equally between Florida office and medical office buildings. IP Capital Partners owns and manages over 11 million square feet of industrial and office properties in these five states.

“Property values have decoupled from their intrinsic value,” said firm Co-Founder and Chief Investment Officer Josh Procacci. “That has created an opportunity to acquire office real estate at a deep discount. This is especially true in South Florida and Tampa Bay where tremendous population growth has outpaced the trend toward working from home.”

Since its founding in 2012, IP Capital Partners has created five closed-ended funds, four of which are value funds. The company’s principals have over 60 years of combined experience in the real estate industry and have conducted transactions totaling over $15 billion.