FrontRange Capital Partners Forms Co-GP Industrial Venture With Capital Partners Across Midwest and Sunbelt

FrontRange Capital Partners ("FrontRange") and Capital Partners, a Minneapolis-based real estate investment firm, announced on Oct. 20, 2026, the formation of a strategic joint venture focused on acquiring and opportunistically developing industrial real estate. The co-GP partnership combines FrontRange's investment capital and operational support capabilities with Capital Partners' local market expertise, operating platform and experience acquiring and managing industrial properties, the firms said.

Venture Targets Value-Add Infill Industrial Assets

The new venture will target acquisitions of in-fill industrial real estate with value-add potential, along with select opportunistic warehouse bulk industrial development projects, where warranted, as part of a broader expansion across the Midwest and Sunbelt regions, according to the announcement.

The venture's pipeline comprises portfolio acquisition opportunities for near-term investment. The firms said these assets feature a diversified base of long-standing tenants and offer the potential to create value through contractual rent growth and by capturing the spread between in-place and market rents over the hold period.

Executives Comment on the Partnership

"Capital Partners has built an impressive reputation through its disciplined investment approach, deep market knowledge, and long-standing relationships throughout the industrial real estate sector," said Christopher Davis, Partner at FrontRange. "We believe their ability to source attractive on- and off-market investment opportunities, particularly in the value-add industrial space, makes them an excellent partner. We are excited to capitalize on compelling investment opportunities together and support the continued growth of their business."

Peter Mork, Founding Partner of Capital Partners, said the partnership builds on the investment strategy and relationships the firm has developed over time. "FrontRange brings both strategic capital and institutional investment experience that will allow us to pursue a broader pipeline of opportunities and strategically expand our market footprint, while maintaining the disciplined approach that is central to our success," Mork said. "We look forward to building a long-term partnership focused on creating value for our investors and the businesses that occupy our properties."

Capital Partners' Industrial Platform

Capital Partners is a real estate investment firm focused on acquiring shallow-bay and small-bay industrial real estate in the Midwest and Southwest Florida. Founded in 2000 and headquartered in Edina, Minnesota, its platform capabilities include acquisitions, development, asset management, property management and in-house accounting.

The company owns or manages more than $1.8 billion of industrial real estate across the Twin Cities, Milwaukee, Southwest Florida and Indianapolis. Its investment platform supports transaction sizes from $5 million to $400 million and spans multi-tenant, portfolio, industrial and flex transactions. Capital Partners also describes itself as owning and operating approximately 3 million square feet of industrial-tech space in the Twin Cities.

Its public portfolio includes Twin Cities properties such as Corporate Square in Eagan (476,397 square feet across the listed buildings), the 386,724-square-foot Diamond Lake Road distribution center in Rogers, Golden Hills in Golden Valley (260,124 square feet), the Midway Mile Industrial Campus in St. Paul (1,851,164 square feet), and Xeon Industrial in Coon Rapids (85,000 square feet).

Capital Partners has also pursued joint venture acquisitions. A seven-property Twin Cities industrial portfolio of approximately 1.2 million square feet, 82% leased at acquisition, was acquired by a joint venture between PCCP and Capital Partners. The portfolio included France Avenue Business Park in Brooklyn Center, Northpoint Industrial Center in Fridley, Corporate Square in Eagan, Braemar Business Center in Bloomington, Burnsville Business Center in Burnsville and Round Lake Business Center in Arden Hills. The 82% occupancy compared with Minneapolis-area industrial vacancy of approximately 7%, creating a lease-up opportunity. Capital Partners also completed a $54.25 million acquisition of five Twin Cities industrial properties in October 2026.

FrontRange's Co-GP Strategy

The Capital Partners venture follows other co-GP structures formed by FrontRange. In April 2026, the firm formed a co-GP partnership with Browning Real Estate Partners targeting Class A industrial and multifamily development and acquisition in Indiana, Ohio and Kentucky; that venture had already committed to two Indianapolis-area ground-up industrial projects. In 2025, FrontRange and O'Connor Capital Partners launched a $150 million programmatic venture to develop triple net leased retail assets.

Market Context

Shallow-bay and small-bay industrial buildings typically serve local and regional users, contractors, manufacturers and service businesses, producing a diversified tenant base and multiple opportunities to re-lease space at market rents. The partners' stated value-creation assumptions of rent growth, lease-up and mark-to-market spreads align with the operating profile of the previously acquired Twin Cities portfolio, where below-market occupancy created an immediate leasing opportunity. Capital Partners' portfolio has been concentrated within roughly six to 14 miles of downtown Minneapolis and near major freeways, characteristics consistent with the venture's stated preference for infill industrial.

Sources

• FrontRange Capital Partners: https://frontrangecap.com/news/907/