A New York real estate investment manager has entered into a joint venture with GID on an 8M SF industrial portfolio spanning eight U.S. markets.
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An affiliate of StepStone Real Estate partnered with GID in a $985M manager-led secondary investment transaction encompassing 87 buildings in Atlanta, Charlotte, Chicago, Dallas, San Antonio, Seattle, Portland, Oregon, and Jacksonville, Florida, according to a Monday press release.
StepStone has been focused on infill industrial properties in markets where supply is tight and the fundamentals support the underlying real estate, John Waters, StepStone partner and global co-head of investments, said in the release.
GID, which has managed the portfolio since 2021, will continue to serve as asset manager for the newly formed JV. It said its portfolio has the “potential for future value creation through active asset management and leasing.”
GID and StepStone did not respond to requests for comment in time for publication.
Secondary transactions, which can vary in their structures, are becoming a popular way for existing owners to recapitalize their portfolios without selling the real estate during a time when interest rates are on the rise and sales activity has slowed, CRE Daily reported last month. Real estate secondary deals totaled more than $20B last year, up from $14.6B in 2024, according to CRE Daily, citing data from Ares Secondaries Group.
Still, secondary transactions can allow previous investors to cash out of their holdings, while freeing up capital for the original owner or partners who remain in the ownership stack.
This past summer, Atlanta-based Ardent recapitalized its self-storage fund with StepStone, allowing investors from Ardent's Self-Storage Development Fund II to exit the portfolio, City Biz previously reported.
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