Cerberus Capital, Stonemont Financial form $1B domestic industrial venture
JV will target opportunities in white-hot logistics sector
Stonemont Financial Group and an affiliate of Cerberus Capital Management LP have formed a joint venture to invest in the white-hot logistics sector.
The partners want to buy as much as $1 billion worth of industrial real estate, according to Commercial Property Executive. So far, the two firms have purchased properties in Illinois, Florida, Mississippi and Tennessee. They did not disclose their total investment in those properties.
Stonemont manages around 15 million square feet of industrial real estate, while Cerberus has recently partnered with other firms on logistics investments, including LPC West and Provender Partners.
The joint venture will target logistics properties with a particular eye toward last-mile distribution facilities, truck terminals, truck and trailer parking, and maintenance facilities.
The growth of e-commerce, spurred by the pandemic, has helped make those facilities one of strongest property types amid the broader economic downturn. Logistics accounted for 20 percent of global commercial real estate spending last year, compared to 15 percent in 2015. CBRE projects that logistics pricing will rise 68 percent by 2030.
Cerberus has also been raising funds to take advantage of the economic fallout from the coronavirus pandemic. The firm wants to quadruple the size of its new stressed and distressed credit fund to $750 million.
[Commercial Property Executive] — Dennis Lynch