Industrial real estate manager Alterra IOS has landed a $244 million loan to support its investments in industrial outdoor storage (IOS) properties, a category which includes yard space typically used for vehicle, material, and equipment storage.
The company did not specify how it plans to use the money, but said it is also planning future funding rounds that are scheduled for upcoming acquisitions.
The financing follows other recent examples of large investments in logistics real estate, including a $1.81 billion deal last week by BKM Capital Partners and Kayne Anderson Real Estate. Other examples involving IOS include deals by Annapolis, Maryland-based logistics real estate investment firm Realterm and by the investment bank Morgan Stanley. In addition, Alterra itself acquired 11 IOS properties in January, describing them as being concentrated in major industrial and logistics hubs across the U.S. and totaling 31.6 usable acres and 206,000 square feet of warehouse space.
Philadelphia-based Alterra’s business model is to serve as the investor, developer, and operator of the IOS properties in its portfolio. The firm focuses on acquiring IOS locations within dense, infill logistics and transportation gateways, ensuring proximity to critical infrastructure and end-users. Following that approach, the company has acquired more than 470 properties across 39 states as of the second quarter of this year.
The latest funding comes from Blackstone Real Estate Debt Strategies, and the loan was secured in part by 37 IOS properties spanning 27 markets. Those sites total 165 usable acres of IOS real estate and 806,000 square feet of accompanying warehouse space. Each property is concentrated in major U.S. industrial and logistics corridors, including key markets across Florida, Georgia, Indiana, Maryland, North Carolina and Virginia.
The capital injection comes on the heels of several significant funding transactions for Alterra, including $103 million in acquisition financing from PGIM, the global asset management business of Prudential Financial, Inc.; and a $100 million revolving credit facility from Bank of Montreal. In all, Alterra has raised more than $1.8 billion in institutional financing across its discretionary ventures, Alterra IOS Venture II ($524 million) and Venture III ($925 million), complementing $1.45 billion in equity raised for its closed-end funds.
