Peakstone Realty Trust (NYSE: PKST), a real estate investment trust specializing in industrial assets, announced its acquisition of a 51-property industrial outdoor storage (IOS) portfolio from a joint venture between Alterra IOS and J.P. Morgan Asset Management’s advised institutional investors. The off-market transaction, valued at $490 million, was funded through a combination of the Company’s credit facility and cash reserves.
The portfolio includes 45 operating properties and six redevelopment sites, totaling 440 usable acres across 14 states and strategically positioned near key supply chains and population hubs. Currently, the operating properties are approximately 100% leased to diverse, high-quality national and regional tenants, with a weighted average lease term of 4.5 years.
This acquisition significantly broadens Peakstone’s industrial footprint and introduces it to the high-growth IOS sector, known for strong operating dynamics, limited supply, and low capital expenditure needs. The deal also brings a substantial 70% mark-to-market opportunity on the operating assets and additional yield potential from the six redevelopment sites.
CEO Michael Escalante commented, “This portfolio complements our industrial business and adds scale, depth, and growth in a sector with robust fundamentals. We expect sustained favorable trends in IOS and are committed to strategically growing our industrial portfolio while managing leverage.”
Leo Addimando and Matt Pfeiffer of Alterra noted that the acquisition advances the institutionalization of IOS assets and recognized Peakstone as well-positioned to build upon the portfolio’s success. Preston Meyer from J.P. Morgan Asset Management described the transaction as a milestone for the firm’s investment strategy.
Advisors
BofA Securities acted as Peakstone’s exclusive financial advisor, with O’Melveny & Myers LLP, Latham & Watkins LLP, and DLA Piper as legal counsel.
About Peakstone Realty Trust
Peakstone Realty Trust is an internally managed REIT focused on owning and operating industrial assets. Peakstone’s high-quality portfolio consists of predominately single-tenant properties located in strategic markets.
About Alterra IOS
Alterra’s industrial real estate platform, Alterra IOS, is dedicated to providing real estate solutions through property acquisition, development, management & leasing for tenants in the heavy industrial & outdoor storage space. Focused on low-building coverage sites with large, stabilized yard space to accommodate an array of uses such as vehicle, material, and equipment storage, Alterra brings an institutional comprehension of the municipal & logistical complexities in securing mission-critical real estate for the often-overlooked sectors of the U.S. industrial landscape. Over the past six years, Alterra IOS has created tenant relationships in the transportation & logistics, vehicle storage, equipment rental, and building materials industries through the acquisition or development of over 280 properties across 30+ states as of Q3 2024. The dedicated team of investment, development, construction, and asset management professionals provide tenants the resources to grow and improve their businesses through site selection, development, and/or sale-leaseback transactions.
About J.P. Morgan Asset Management
J.P. Morgan Asset Management is a global leader in alternatives, with over 60 years of experience managing alternative investments, including real estate, private equity, private credit, liquid alternative products, infrastructure, transport, hedge funds, and forestry. As of September 30, 2024, J.P. Morgan oversees more than $400 billion in alternative assets.
With $3.5 trillion in assets under management as of September 30, 2024, J.P. Morgan Asset Management serves institutions, retail investors, and high-net-worth individuals across every major market globally. The firm offers comprehensive investment management services in equities, fixed income, alternatives, and liquidity.
