Bay Street Capital and Drake Real Estate Announce $100M Storage JV

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A joint venture between Bay Street Capital and Drake Real Estate Partners plans to close on around $100 million worth of industrial outdoor storage (IOS) properties by the end of 2022, Commercial Observer can first report. 

“We are excited to team up with Drake Real Estate Partners to build a large portfolio of these assets across the U.S.,” stated Jeremy Stenberg, principal of Bay Street Capital, in prepared remarks. “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.”

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The joint venture plans to buy industrial properties in “urban infill” areas around major U.S. cities, according to a release.

It has already picked up two outdoor storage properties around Nashville — 470 Rick Buchanan Street and 1241 Salem Park Court — which have a combined 18 acres, the press release said. According to the release, one secured a long-term lease and the other is in the process of being redeveloped, but it didn’t specify which is which.

“As IOS continues to experience high demand, record rents and low vacancy rates, it is exciting to formalize this joint venture with Bay Street Capital,” said David Cotterman, co-founder & chief investment officer of Drake Real Estate Partners. “We look forward to expanding our IOS portfolio across the country.”

Update: This story originally misattributed source material. This has been corrected. We apologize for the error.

Emily Fu can be reached at efu@commercialobserver.com.