Peakstone Realty Trust acquires 51 IOS properties in $490M deal

Peakstone Realty Trust (PKST) announced that the company has acquired a portfolio of 51 industrial outdoor storage properties from a joint venture between Alterra IOS, and institutional investors advised by J.P. Morgan Asset Management in an off-market transaction valued at $490M. The acquisition was funded by a combination of proceeds from the company’s credit facility and cash on hand. The 51-property infill portfolio comprises 45 operating assets and six redevelopment sites. These assets span a total of 440 usable acres across 14 states and are strategically located near major supply chains and population centers. The operating portfolio has a WALT of 4.5 years and is approximately 100% leased to diversified, high-quality, primarily national and regional tenants. Through this acquisition, Peakstone has expanded its overall industrial footprint and has established a significant presence in this emerging, high-growth sector. Industrial outdoor storage is characterized by favorable operating dynamics, significant supply constraints and minimal capital expenditure requirements. The company has significantly enhanced its long-term growth profile with a potential 70% mark-to-market opportunity3 on the IOS operating assets and the ability to achieve incremental yield through six redevelopment sites. “We are pleased to announce our entry into the industrial outdoor storage sector,” said Michael Escalante, CEO of Peakstone. “This portfolio is highly complementary to our existing industrial business, and adds meaningful scale, breadth and growth opportunities in a sector with compelling operating fundamentals. We expect that favorable market trends will persist in the IOS sector, and will drive long-term value for shareholders. Looking forward, we are committed to shifting our portfolio more towards industrial, and we will be strategic about balancing industrial investments while reducing leverage.”