REAL ESTATE NEWS

Steel Peak has formed a joint venture with Tarsadia Investments to expand its exposure in Industrial Outdoor Storage properties on the West Coast. The two plan to spend roughly $150 million in 2026 alone, with the long-term goal to boost the portfolio to consist of more than $500 million in assets.

Just over two years into Steel Peak's founding, the real estate investment firm has already acquired 11 IOS properties. The Southern-California-based company focuses on value-add buys on construction-oriented facilities in the sector that feature elements including low coverage buildings, large secured yards, building materials and tenants involved in equipment rental and industrial services. Plus, Steel Peak implements capital improvement plans to attract national and local tenants.

In August 2025, Steel Peak announced it paid $6.2 million for an IOS property in Pacific, Washington, representing its second buy in the Seattle area. At the time, the company said it had purchased assets in California, Utah and Washington State.

"This partnership gives us the capital and alignment to execute our business plan at scale," Blake Rodgers, co-founder and principal of Steel Peak, said in a statement.

"We plan to significantly expand our acquisition pipeline, grow our internal team, and pursue opportunities across multiple Western U.S. markets, while maintaining the same disciplined, operations-driven investment approach that has defined our platform."

Steal Peak did not reveal if it will target any other markets on the West Coast outside its existing portfolio markets.

In addition to expansion, Steal Peak said that it will explore long-term partnerships with IOS tenants and, on the credit side, provide real estate solutions.

When it comes to the IOS market as a whole, a recent CommercialCafe industrial market analysissaid that the sector is set to transition into more of an institutionalized asset class with standardized pricing, as investment activity has been surging.

Source: GlobeSt/ALM