New Stonemont, Cerberus JV Targets Industrial Service Facilities

Industrial developer and investor Stonemont Financial Group has partnered with an affiliate of Cerberus Capital Management to build a large-scale portfolio of logistics and outdoor storage industrial real estate across the US.

The joint venture aims to build a billion-dollar portfolio of industrial service facilities that will act as ‘mission-critical’ freight distribution transfer points for the storage and flow of goods to final destinations.

While the JV will target a broad range of acquisition opportunities across the US, it will focus on truck terminals, truck and trailer parking and R&M facilities, outdoor storage facilities and other assets that support last-mile distribution centers and warehouses. So far, it has acquired assets in Illinois, Florida, Mississippi and Tennessee.

“As e-commerce activity continues to gain market share, there is no question that industrial service facilities will likely become one of the most sought-after asset classes in the country,” said Zack Markwell, managing principal and CEO at Stonemont Financial Group in a prepared statement. 

Stonemont has more than 15 million square feet of industrial under management. Cerberus Real Estate has deployed approximately $29 billion of equity in more than 575 transactions across asset classes and property types worldwide.

Several major institutions have increased exposure to the industrial sector during the pandemic, particularly in high-quality logistics and e-commerce markets.

Some of the most notable recent transactions include KKR’s acquisition of an $800 million 100-property industrial portfolio, Crow Holdings partnership with Allianz Real Estate to acquire a 49% stake in a 19-asset, 6.1 million-square-foot US industrial portfolio developed by Crow Holdings and Rexford Industrial Realty’s acquisition of an 18-asset industrial property portfolio for $154.6 million.