Top IOS Deals of Q4'24

YARDDOGS TOP DEALS OF Q4
Acquisitions and Dispositions

ACQUISITION: Peakstone Realty Trust (NYSE: PKST) acquired a portfolio of 51 IOS 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 $490 million!

The 51-property infill portfolio comprises 45 operating assets and six redevelopment sites (see map above). These assets span a total of 440 usable acres across 14 states and are strategically located near major supply chains and population centers.

"We are pleased to announce our entry into the industrial outdoor storage sector,” said Michael Escalante, CEO of Peakstone. An entry indeed! Access the full deck here.

ACQUISITION: Ambient Capital Partners has acquired a 48.7-acre IOS portfolio of six properties in Harrison and Kearny, NJ (for $156.3 million). NAI James E. Hanson brokers Scott Perkins, Christopher Todd, and William Ericksen represented Ambient Capital Partners. Murphy Schiller & Wilkes LLP’s Kellen Murphy, Charles J. Wilkes, Holly Burke, Jessica R. Brenner, Joseph Vigliotti and Diana Dziedzic represented the seller.

ACQUISITION: Alterra IOS acquires portfolio of 7 IOS sites totaling 23 acres. The sites are fully leased to a national leader in telecommunications and broadband networks. Each parcel is strategically located across metropolitan areas in Dallas, Minneapolis, Indianapolis, Chicago, Nashville, Cleveland, and St. Louis.

CRE Advising facilitated the acquisition of the portfolio.

ACQUISITION: Estes and a R+L Carriers Affiliate Buy 12 More Ex-Yellow Terminals for a combined $192.5 Million

• Estes Acquisitions: Estes will pay $142.5 million for seven owned properties and four leased properties. The seven owned properties are:

  • A 167-door terminal on 52.7 acres in Tracy, CA

  • A 75-door terminal on 13.5 acres in Fort Wayne, IN

  • An 80-door terminal on 21.9 acres in Jeffersonville, IN

  • A 136-door terminal on 39.2 acres in Hagerstown, MD

  • A 67-door terminal on 8.6 acres in Omaha, NE

  • A 216-door terminal on 42.9 acres in Cincinnati, OH

  • A 198-door terminal on 95 acres in Ringgold, GA

  • The four leased properties are in: Norway, MI; Dunmore, PA; Miami, FL; and Orange, CA.

• Ramar Land Corp (R+L Carries Affiliate) Acquisitions: Ramar Land Corp. will pay $50 million for one owned terminal.

  • A 304-door terminal on 51.2 acres in Maybrook, NY — this facility was the second-largest owned property available in the third auction of Yellow’s real estate

• Yellow’s Remaining Real Estate: Two previous rounds of auctions resulted in $1.8 Billion and $82.8 Million for the sale of 128 and 23 of Yellow’s owned and leased terminals, respectively. A binding bid deadline for the remaining facilities is Jan 6, which will be followed by an auction of the remaining properties held Jan 13-15.

IOS DIVE
Institutional Investors Want IOS

This summer 2024, an additional $3 billion of capital was raised to chase industrial outdoor real estate. $3 BILLION! Groups such as JP Morgan, TPG Angelo Gordon, and pension funds have partnered with leading national operators like Zenith, Alterra, and Triten to place the capital. These institutional investors are looking to find stabilized properties, in high population growth areas, with credit tenants in place.

IOS remains a highly fragmented space and it can be difficult to find the ideal trifecta described above. Many of these JVs are on a timeline to deploy capital and are structured in a way that makes it hard to execute on value-add strategies of IOS sites. The ideal scenario for them is to gobble as much infill IOS sites as efficiently as possible. This pairs well with the fact that there are local operators with capital to deploy that are well positioned to complete a value-add lift on IOS sites across the US, before stabilizing and selling to the larger institutional investors. IOS YardDogs come in many forms!!

RECS
Worth a Look

• Read: Goldman Sachs’ 2025 Economic Outlook - GS discusses economic outlook in 2025, covering projected GDP growth (2.5%), core inflation trends, and how interest rates may move