PCCP and Stonemont Financial Group are officially the new owners of an industrial portfolio with a total area of 5.9 million square feet. The joint venture acquired the 38 properties, spread across 14 markets in 10 states, from Blackstone, the seller, for an amount exceeding US$1 billion. The transaction closed on 29th July and was an off-market deal, with Eastdil Secured acting as advisor.
Ryan Dodge, Partner at PCCP, commented on the acquisition, highlighting PCCP's continued conviction in the industrial sector. He emphasised that the acquired properties are located in markets where the company has actively invested over the past five years. Dodge added that the industrial portfolio continues to show strong momentum with increased leasing demand in recent months. In his assessment, the portfolio is well-positioned to benefit from the same market trends.
The portfolio is currently leased to over 70 different tenants and is located in dense submarkets such as Denver, Dallas, Atlanta, and Charlotte, North Carolina. It also includes sites in high-growth markets such as San Diego, Reno, Nevada, and El Paso, Texas. With PCCP and Stonemont Financial at the helm, the joint venture plans to focus on revenue growth through contractual rent escalations and market-based rent adjustments upon lease renewals, according to an announcement.
Zack Markwell, CEO and Managing Principal of Stonemont, stated that this transaction reflects their conviction in the long-term fundamentals of the industrial real estate sector. He expressed delight at the renewed partnership with PCCP and affirmed their intention to continue pursuing attractive acquisition opportunities alongside their active development programme.
The industrial sector is an investment strength of PCCP. The company currently manages over 68 million square feet of industrial properties across more than 52 markets. This acquisition increases the number of industrial transactions to 262. Atlanta-based Stonemont has deployed over US$8 billion in capital since its inception in 2007. The two companies are frequent joint venture partners, developing and investing in industrial properties and portfolios nationwide. These include projects such as the TIA Executive Center, a 100,698 square foot Class A industrial and logistics facility in Tampa, Florida, and the Passaic Logistics Center, a 295,506 square foot facility in New Jersey.
