Catalyst Investment Closes $187M IOS Fund
The new vehicle targets industrial outdoor storage assets in major East Coast markets.
Catalyst Investment Partners, a New York-based industrial outdoor storage-focused investment manager, closed its Catalyst IOS Fund II with $186.9 million in LP commitments—surpassing the $150 million fundraise target.
Fund II received broad-based institutional interest from domestic and international investors, including several new institutional entities. Commitments came from endowments, foundations, wealth managers, family offices and high-net-worth individuals.
Incubation Capital (Incucap) acted as placement agent for the fund raise. Jonathan Glick and William Edge led distribution and marketing on behalf of Incucap.
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Fund II is the firm’s second in its IOS Fund Series focused on densely populated, infill industrial markets with high barriers to entry. The fund will grow the Catalyst IOS portfolio to more than $500 million in gross asset value. The fund plans to invest in IOS properties in major East Coast markets. The firm focuses on New York City; New Jersey; Philadelphia, Delaware; Washington, D.C.; Baltimore; Nashville, Tenn.; Charlotte, N.C.; Charleston, S.C.; Savannah, Ga.; Orlando, Tampa and Miami in Florida and Dallas.
A look at the portfolio
Catalyst Investment Partners acquired a 5.2-acre property last month at 8320 Bletzer Road in Dundalk, Md., a Baltimore suburb for $2.6 million from Fraley and Schiller, according to Marcus & Millichap, which had the exclusive listing to market the property. The site has truck and trailer parking, a 1,700-square-foot office, a fenced, lit and secure lot and is 5 miles from the Dundalk Marine Terminal. Catalyst was represented by MacKenzie Commercial Real Estate.
According to the firm’s website, other properties in the portfolio include 2600 Louisville Road, Savannah, a 6.7-acre property including IOS and a cold storage warehouse that is about 2.5 miles from the Port of Savannah; 11 Daniel Road, a 2.96-acre industrial property in Fairfield, N.J., that is used as contractor storage and is located in a high-density submarket about 24 miles from New York City; 2031 Inverness Ave., Baltimore, a 1.63-acre industrial property used as an equipment rental facility about 6 miles from the Port of Baltimore, and 405 N. 37th St., Pennsauken, N.J., a 3.2-acre IOS property located about 5.5 miles from downtown Philadelphia.
Growing industrial niche
Catalyst Investment Partners was founded in 2017 by Dan Haroun and Max Heiden. The firm currently owns or controls more than 50 IOS sites across the Eastern U.S. The company also announced this week that it had hired five new IOS professionals. New team members include: Drew Miles, leasing manager; Agatha Wojik, controller; Nell Hurley, associate; Noah Goldstein and Von Hobe, both analysts.
IOS properties are improved, low-building coverage industrial properties that make up the backbone of the supply chain. Property types include truck terminals, industrial service facilities and material or equipment laydown yards.
Previously known as a niche within the larger industrial market, over the last several years IOS has grown to be at least a $200 billion market that is increasingly attracting institutional investors as well as real estate investment and development firms with specialized IOS operating platforms. One investor thinks $200 billion is a conservative estimate. It could be because the bigger players are building national portfolios nearing $1 billion in some cases and surpassing $2 billion in at least one case.
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