Blackstone Provides $231M for IOS Portfolio
More than half of the collection’s footprint is concentrated in the Sun Belt.
Blackstone Real Estate Debt Strategies issued $231 million in financing for a 43-property industrial outdoor storage portfolio encompassing 293 acres throughout 13 states. JIOS, a subsidiary of Jadian Capital, secured the note with JLL representation.
The collection is spread across 19 markets, with more than half of its acreage being clustered around the Sun Belt, while a little over a third of the land is concentrated in the Northeast and Mid-Atlantic regions. The properties are near major metro areas, close to seaports, rail systems, highways and airports.
The tenant roster includes United Rentals, the largest equipment charter company in the world, Waste Management, Ryder—a 3PL provider—and ABF Freight, a truckload carrier subsidiary of ArcBest.
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Jadian has been investing in IOS properties for many years, thanks to the sector’s growing demand and high barrier-to-entry, according to a company statement. What’s more, the firm plans to invest some $2 billion in this asset class across the next two years.
JLL Senior Managing Directors Peter Rotchford and Christopher Peck, as well as Managing Director Tyler Peck, led the crew that represented JIOS in the debt negotiations.
The evolving IOS market
The brokerage firm witnesses a heightened interest in the IOS sector as both investors and lenders aim to capitalize on the shifting needs of tenants in the e-commerce and logistics industries, Peck said in prepared remarks.
Though still largely fragmented, the IOS sector sees an evolution as large players continue to increase their market share, according to a Colliers report. For instance, United Rentals’ footprint reached 10 percent of the equipment charter market segment as of March.
IOS finance keeps flowing
As the IOS asset class continues to mature, debt flows along, aiding in its transformation. Blackstone was behind another significant financing earlier this year when its Mortgage Trust issued $189 million for a 49-property portfolio owned by Alterra IOS.
Washington Capital Management also originated $120 million in a financing package for a partnership between institutional investors advised by J.P. Morgan Asset Management and Zenith IOS. The debt backs 30 properties across the nation.
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