Brookfield Shifts to IOS With $1.2B Acquisition of Stonepeak
Brookfield Asset Management has agreed to buy Peakstone Realty Trust for about $1.2 billion, in a deal that will take the now industrial-focused REIT private. The transaction is valued at $21 per share, a 34 percent premium from Peakstone's closing stock price on January 30.
In December 2025, Peakstone officially divested fully from office and shifted solely to an industrial REIT, now managing 76 properties. Most of the assets (60) are in the industrial outdoor storage segment. The remaining 16 are traditional properties in the asset class.
"Following an offer from Brookfield, our Board of Trustees evaluated the proposed transaction with the assistance of external advisors and determined that it achieves the best value and other terms reasonably available for shareholders and is in the best interests of the Company," Michael Escalante, CEO of Peakstone, said in a statement.
"This transaction recognizes the value of our industrial portfolio and the progress we have made expanding our IOS platform."
Escalante added that he believes that the deal will deliver "significant value to shareholders.
With the Board's approval, what's left now is getting the green light from the company stockholders. The deal is anticipated to close by the end of the second quarter, but is subject to customary conditions.
A recent CommercialCafe industrial market analysis reportedthat IOS is set to transition into more of an institutionalized asset class with standardized pricing, as investment activity has been surging. In fact, Peakstone made news recently with its acquisition of a $490 million, 51-asset portfolio. Since 2020, IOS rents have soared by 123 percent to $8.66 per square foot.
Source: GlobeSt/ALM