Key Takeaways
- • PREP Funds, a Cleveland-based real estate investment and development firm, closed a $93 million fundraising round for industrial redevelopment projects, demonstrating continued institutional appetite for value-add real estate strategies in the Midwest.
- • The fund has deployed over $85 million across active industrial redevelopment projects as of December 31, 2025, indicating rapid capital deployment and operational execution.
- • PREP Funds' investment strategy targets capital appreciation through value-add industrial property acquisitions, positioning the firm within the broader institutional real estate market focused on supply-constrained asset classes.
- • The firm has established joint venture partnerships, including a three-property industrial portfolio acquisition in Cleveland spanning 339,449 square feet in collaboration with CG Real Estate Capital and IRG, demonstrating syndication capabilities and co-investment relationships.
- • PREP Funds operates a $100 million value-add opportunities fund focused on industrial properties that deliver premium space to tenants, reflecting sector specialization within regional commercial real estate.
Summary
PREP Funds, a Cleveland-based real estate investment firm, has successfully raised $93 million for its latest industrial redevelopment investment fund, according to Crain's Cleveland. The firm, which specializes in value-add and opportunistic industrial real estate acquisitions, has achieved significant traction in deploying capital since fund inception, with over $85 million actively deployed across redevelopment projects as of year-end 2025.
The firm's investment strategy centers on acquiring industrial properties with value-add potential—assets requiring operational improvements, tenant mix optimization, or physical upgrades—to deliver premium-quality industrial space to end users. This approach aligns with broader institutional real estate trends favoring supply-constrained industrial assets in secondary and tertiary markets where tenant demand outpaces modern supply.
PREP Funds has demonstrated operational capability through strategic partnerships and portfolio acquisitions. The firm, alongside co-investors CG Real Estate Capital and IRG, acquired a three-property industrial portfolio in the Cleveland market totaling 339,449 square feet, indicating the firm's ability to execute larger syndicated transactions and manage multi-asset portfolio strategies. The firm also manages a $100 million value-add opportunities fund dedicated to industrial acquisitions meeting specific property criteria and tenant delivery requirements.
The $93 million fundraising round reflects institutional confidence in PREP Funds' management team and investment thesis at a time when industrial real estate—particularly value-add positioned assets—remains an institutional allocation priority. The rapid deployment of raised capital, with $85 million already invested within months of the fund close, suggests strong deal flow, management execution, and market conditions favorable to industrial real estate investment in the Cleveland market.
The firm's investment strategy centers on acquiring industrial properties with value-add potential—assets requiring operational improvements, tenant mix optimization, or physical upgrades—to deliver premium-quality industrial space to end users. This approach aligns with broader institutional real estate trends favoring supply-constrained industrial assets in secondary and tertiary markets where tenant demand outpaces modern supply.
PREP Funds has demonstrated operational capability through strategic partnerships and portfolio acquisitions. The firm, alongside co-investors CG Real Estate Capital and IRG, acquired a three-property industrial portfolio in the Cleveland market totaling 339,449 square feet, indicating the firm's ability to execute larger syndicated transactions and manage multi-asset portfolio strategies. The firm also manages a $100 million value-add opportunities fund dedicated to industrial acquisitions meeting specific property criteria and tenant delivery requirements.
The $93 million fundraising round reflects institutional confidence in PREP Funds' management team and investment thesis at a time when industrial real estate—particularly value-add positioned assets—remains an institutional allocation priority. The rapid deployment of raised capital, with $85 million already invested within months of the fund close, suggests strong deal flow, management execution, and market conditions favorable to industrial real estate investment in the Cleveland market.
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