Stonepeak Wraps $125M Portfolio Acquisition

Situated in the Chicago area, the assets expand the company’s footprint by 1.7 million square feet.

Stonepeak, a New York-based alternative investment firm, has acquired a three-building, 1.7 million-square-foot rail-served logistics portfolio in the Chicago market from CenterPoint Properties.

Stonepeak has acquired a three-building portfolio in Elwood, Ill., at the largest inland port in North America
Stonepeak has acquired a three-building portfolio in Elwood, Ill., at the largest inland port in North America. Image courtesy of Stonepeak

The sale price for the fully leased portfolio was $125 million, according to IPE Real Assets.

The properties are located in Elwood, Ill., at 26318-26634 S. Walton Drive, 21561 Mississippi Ave. and 26634 Mississippi Ave.

The portfolio is situated in the CenterPoint Intermodal Center–Joliet/Elwood, the largest inland port in North America. It is anchored by BNSF and Union Pacific Class I rail intermodal terminals. The 6,400-acre intermodal port and industrial park is adjacent to Interstate 55 and about 40 miles southwest of Chicago.

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All six Class I railroads converge in Chicago, with 25 percent of U.S. freight trains and half of all intermodal trains passing through. The Midwest Chicago market is a strategic transportation hub with a one-day delivery window to nearly 55 million households in the U.S.

Infrastructure, supply chain focus

Stonepeak specializes in infrastructure and real assets with approximately $65.1 billion of assets under management. The Chicago market portfolio investment represents the team’s continued focus on supply chain real estate anchored by essential inland and coastal port infrastructure.

In October, Stonepeak sold the Omni Industrial Campus, a 1.3 million-square-foot logistics portfolio located in Summerville, S.C., near the Port of Charleston to Rockpoint. Stonepeak made its initial investment in the 100-acre campus in December 2021.

The team targets mission-critical opportunities supported by strong macro tailwinds that have durable cash flow profiles, embedded demand drivers, high barriers to entry and inflation protection. Stonepeak sponsors investment vehicles focused on private equity and credit, while providing capital, operational support and partnership in its target sectors. The firm is also seeking to raise about $1 billion for its first real estate fund, which will focus on acquisitions in U.S. industrial, residential, health-care and technology-based real estate, according to IPE Real Assets. As of August, Stonepeak was halfway to its goal, the publication reported.

In April 2022, Stonepeak closed an equity recapitalization of hyperscale provider Cologix, valued at $3 billion. The transaction was structured as a sale by Stonepeak Infrastructure Fund II LP and co-investors to Stonepeak-managed vehicles.

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