Stoic Equity Partners Launches $15 Million Investment Fund Focused on Value-Add Industrial Flex Properties in the Southeast
MOBILE, Ala., April 14, 2025 /PRNewswire/ -- Stoic Equity Partners, a commercial real estate investment manager and sponsor, announced today the launch of SEP Industrial Holdings II, LLC. Seeking to raise $15 million in equity from accredited investors, the 506(c) private placement investment fund intends to utilize equity raised to acquire value-add industrial flex properties across the Southeastern United States.
"Building on the success of our first fund, we are delighted to announce the launch of SEP Industrial Holdings II," said Grant Reaves, co-founder and managing director of Stoic Equity Partners. "We believe we have identified a significant opportunity to invest in value-add industrial flex properties in the Southeast, driven by strong population growth and steady demand for service-based companies. New developments have been hindered by construction costs, which has caused rental rates to rise and provides opportunities for further increases."
The fund is focused on acquiring multi-tenant industrial flex properties, ranging in size from 50,000 to 150,000 square feet, within growth markets in the Southeast where the cost of new development is too high compared to market rental rates. The sponsor will seek to enhance the facility revenue by increasing in-place lease rates and occupancy, if applicable, as well as through completing interior and exterior renovations with the goal of selling the assets to realize additional returns.
"With SEP Industrial Holdings II, we are aligning investors with one of the most resilient and promising sectors of commercial real estate," said Jeremy Friedman, Stoic's CEO and co-founder. "Smaller industrial flex properties are the overlooked backbone of America's growth economy, and we seek to realize their potential long-term value by targeting high-barrier markets where new development is impractical."
The minimum investment is $25,000, and interests will be offered to accredited investors pursuant to Regulation D, Rule 506(c) under the Securities Act of 1933. The fund aims to deliver to members an annual 8% cumulative, non-compounding preferred return, which will be paid in cash monthly in arrears beginning after the end of the fund's second fiscal year.1 SEP Industrial Holdings II expects to assemble a portfolio that can achieve a 15% internal rate of return during a four- to six-year hold period.1 Stoic Equity Partners has engaged Peak Capital Solutions to distribute SEP Industrial Holdings II to financial advisors, broker-dealers and registered investment advisory firms.
The Southern U.S. population grew by 1.1% in 2023, more than double the U.S. average and six times greater than the next closest region, the Midwest, which grew by 0.18%.2 Additionally, research from JLL's 2024-2025 Industrial Tenant Demand Study demonstrates that the Southeast leads in overall industrial demand, with migration, manufacturing and port activity driving growth. CoStar reports that industrial properties smaller than 25,000 feet comprised 29% of existing U.S. industrial space, but less than 2% of the industrial space under construction in 2024.3 J.P. Morgan Chase reported in 2025 Commercial Real Estate Trends that the 2025 commercial real estate outlook is largely optimistic with robust performance in the industrial sector and steady retail growth, while CBRE reports in 2025 U.S. Real Estate Market Outlook that industrial cap rates are expected to fall 30 basis points from their peak in 2024 by the end of 2025.
Stoic Equity Partners was co-founded by Grant Reaves and Jeremy Friedman, who, combined, have completed more than $500 million in commercial real estate transactions and have nearly three decades of experience. Since its founding in 2020, the investment firm has built a portfolio with 17 self-storage and industrial properties that have more than 1.1 million leasable square feet combined and an aggregate purchase price of $105 million. Stoic Equity Partners' prior fund, SEP Industrial Holdings I, LLC raised $7.7 million between December 2023 and September 2024.
About Stoic Equity Partners
Founded in 2020 and based in Daphne, Alabama, Stoic Equity Partners is a commercial real estate investment firm and sponsor dedicated to value-add and opportunistic commercial real estate acquisitions and developments throughout the Southeast. The firm was co-founded by Grant Reaves and Jeremy Friedman, who together have completed more than $500 million in commercial real estate transactions and have nearly three decades of experience. As of December 31, 2024, Stoic Equity Partners has built a portfolio with 17 industrial and self-storage properties with a $105 million aggregate purchase price and more than 1.1 million leasable square feet. For more information, visit stoicep.com.
This is neither an offer to sell nor a solicitation of an offer to buy securities described herein. An offering is made only by the confidential private placement memorandum (PPM). Securities offered through Arete Wealth Management, LLC, member FINRA/SIPC. Arete Wealth Management and Stoic Equity Partners are not affiliated companies. This communication is provided for informational purposes only. Additional information is available upon request. Historical data does not guarantee future results. Real estate security investments may be speculative, illiquid, and carry a high degree of risk – including the potential loss of the entire investment. The foregoing is not a complete list of all the risks related to this investment strategy. Investors should review the "Risk Factors" section in the private placement memorandum.
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SOURCE Stoic Equity Partners