Center Capital Partners has closed its second fund focused on industrial outdoor storage, raising $125 million in combined equity across Terminal Logistics Fund II and a joint-venture partnership that the firm says will enable more than $350 million in gross acquisition capacity.
The Los Angeles-based platform investor said Terminal Logistics is dedicated exclusively to the industrial outdoor storage sector, which it characterizes as supply-constrained and highly fragmented, with ownership concentrated among private users and sub-scale operators. Center said the strategy is designed to consolidate IOS assets and apply institutional-grade operations and asset management to a segment it views as underserved by large pools of capital.
Center cited demand drivers tied to logistics, manufacturing, and energy and infrastructure activity, as well as continued pressure across supply chains to improve delivery efficiency. With the new equity raise, the firm said Terminal Logistics is positioned to acquire IOS assets across multiple geographies, expand scale, drive operating efficiencies, and execute value-add repositioning initiatives.
Center said the proceeds will be used to build a larger IOS asset base across multiple U.S. markets, fund operational upgrades and targeted infrastructure improvements, and establish a centralized platform for asset management, leasing, and operations.
Center Capital Partners was founded by Alex Valner and Jordan Moelis and has launched and scaled platforms across niche real estate segments, including aviation and industrial outdoor storage. The firm pointed to its earlier platform, Sky Harbour Group, which focuses on specialized aviation infrastructure and is publicly listed on the NYSE under the ticker SKYH.
KEY QUOTES:
“In Terminal Logistics, we’ve created a highly focused platform dedicated exclusively to consolidating fragmented IOS assets and deploying capital with discipline and scale into a historically underserved segment of the real estate market. Surpassing our fundraising target underscores our partners’ confidence in the Center team and its ability to capitalize on the IOS thesis.”
Alex Valner, Co-Founder and Managing Partner, Center Capital Partners
“Terminal Logistics’ diversified capital base, combined with the strength of our team and deep industry and tenant relationships, positions the platform to scale thoughtfully and deliver durable long-term value.”
Jeremy Cohen, Managing Director, Center Capital Partners
