Peakstone Realty Trust announced on November 4, 2024, the acquisition of a 51-property industrial outdoor storage (IOS) portfolio for $490 million. This off-market transaction was completed with a joint venture between Alterra IOS and institutional investors advised by J.P. Morgan Asset Management. The acquisition was funded through a combination of proceeds from the company's credit facility and existing cash reserves.
The newly acquired portfolio comprises 45 operating assets and six redevelopment sites, spanning a total of 440 usable acres across 14 states. These properties are strategically located near major supply chains and population centers, with the operating portfolio being approximately 100% leased to diversified, high-quality tenants. The weighted average lease term (WALT) for the operating assets is 4.5 years.
This acquisition marks Peakstone's significant entry into the high-growth IOS sector, aligning with its strategic transformation towards becoming a focused industrial REIT. CEO Michael Escalante stated that the portfolio is highly complementary to the existing industrial business, adding meaningful scale and growth opportunities. The company anticipates a potential 70% mark-to-market opportunity on the IOS operating assets, alongside incremental yield from the redevelopment sites.
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