Bay Street Capital and Drake Real Estate Announce $100M Storage JV
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.”
The joint venture intends to focus on acquiring industrial assets in urban infill locations near major U.S. markets.
In May, Bay Street Capital and Drake Real Estate Partners closed on two IOS properties in the greater Nashville area. The two Tennessee properties, at 470 Dick Buchanan Street and 1241 Salem Park Court, bring to market a combined 18 acres of industrial outdoor storage space. According to the press release, one of the properties is undergoing redevelopment, and the other has already secured a long-term lease. The JV expects to close on additional properties at the end of June.
“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.”
Emily Fu can be reached at firstname.lastname@example.org.