Alterra Locks In $344M for Outdoor Storage Portfolio
Truist Financial Corp. and Bank of Montreal provided the financing.
Alterra IOS, a leading player in the industrial outdoor storage sector, closed on a $343.6 million loan from Truist Financial Corp. and Bank of Montreal on behalf of Alterra IOS Venture II, a closed-end fund with $524 million in equity commitments. The funds refinance three maturing loans secured by 64 IOS properties in 22 states.
Truist and Bank of Montreal were not lenders on any of the three maturing loans. However, the two banks are lenders for a separate $400 million financing facility for Alterra IOS Venture III, according to an Alterra IOS spokesperson. Further details about the new financing or the three maturing loans were not disclosed.
Officials at both banks and Alterra stated in prepared remarks that the new financing represents a continuation of support for Alterra’s investment strategy in growing and managing its portfolio and confidence in the underlying fundamentals of the IOS asset class.
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Alterra, which has acquired more than 350 IOS sites across 37 states over six years, said the financing from Truist and BMO is backed by IOS properties across 580 usable acres in markets like Atlanta, Chicago, Dallas-Fort Worth and Houston.
Chad Orcutt at JLL Capital Markets represented Alterra in the financing. Rittenhouse Law advised the firm on the loan.
More than $1.5B raised
In addition to refinancing the maturing loans, the new facility improved overall borrowing costs across the firm’s portfolio. Alterra has now raised more than $1.5 billion in institutional financing across its various ventures, complementing $1.45 billion in equity raised for its closed-end funds Alterra IOS Venture II and Venture III, which has $925 million of equity commitments.
In February, Blackstone Mortgage Trust Inc. originated a $189 million loan that backed 49 IOS sites in 22 states across 235 acres acquired through the Venture III fund. It was Alterra’s first financing with the Blackstone team, which is actively deploying capital into compelling investment opportunities, including the IOS sector. Most of the properties were in markets like Atlanta, Chicago and Tampa, Fla. One of the sites in the Blackstone loan was 2201 E. Higgins Road in Elk Grove, Ill., in the Chicago market. The site was purchased in October and has 4.8 usable acres and 35,000 square feet of warehouse space.
Alterra IOS deals
A vertically integrated investor, developer and operator of IOS, Philadelphia-based Alterra focuses on prime locations with access to essential infrastructure as well as properties that are situated in dense, infill logistics and transportation gateways. The firm targets low-building coverage sites with large, stabilized yard space to accommodate a variety of uses such as vehicle, material and equipment storage.
Late last year, Alterra closed on the sale of an institutional-grade portfolio of 51 properties to Peakstone Realty Trust for $490 million in an off-market transaction. The assets span 440 usable acres in 14 states. At closing, 45 of the 51 properties sold were fully leased.
In January, Alterra expanded its holdings in the DFW market to 10 assets with the acquisition of four properties totaling nearly 35 usable acres. Each of the properties are located within 20 miles of downtown Dallas.
Late last year, Alterra purchased three IOS sites totaling 23 usable acres in the Portland, Ore., market, including properties in Portland, Milwaukie, Ore., and Hubbard, Ore.
A November deal netted Alterra a fully leased, seven-property portfolio with assets in the Dallas, Minneapolis, Indianapolis, Chicago, Cleveland, St. Louis and Nashville, Tenn., metro areas.
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