Bay Street Capital and Drake Real Estate have formed a joint venture aiming to build a $100M portfolio this year of industrial outdoor storage properties, a hot sector drawing the attention of institutional investors as tight industrial markets increase the value of these infill properties, mainly in urban centers.
"We believe IOS is experiencing similar trends to traditional industrial real estate while offering a more attractive return profile. Furthermore, IOS offers resiliency for investors in an economy facing headwinds," said Jeremy Stenberg, principal of Bay Street, in prepared remarks.
Bay Street and Drake already have been acting in tandem to acquire IOS properties. Last month, the partners closed on two IOS properties in the Nashville area with a combined 18 acres of industrial outdoor storage space.
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