Alterra IOS Expands Atlanta Footprint With 5 Acquisitions

Alterra IOS has expanded its industrial outdoor storage assets in the Atlanta metro with the acquisition of five properties totaling 32 usable acres and more than 145,700 square feet of warehouse space.

The purchases bring Alterra’s Atlanta metro portfolio to 28 properties spanning 190 usable acres. The properties are located across key Atlanta industrial submarkets with access to major highways and transportation networks. They are occupied by a mix of national and regional tenants in the building materials, equipment rental and logistics industries.

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The Atlanta properties were acquired in five separate transactions, and the sellers and prices were not officially disclosed. However, the seller of 2400 Barrett Lakes Blvd. in Kennesaw, Ga., was identified as RLR Investments by Yardi Matrix. The property, which has 117,600 square feet of warehouse space, is a transit terminal leased to R+L Carriers, owned by the same family as RLR Investments.

Built in 1990, 2400 Barrett Lakes Blvd. has five drive-through bays, a pull-in bay and 151 dock-high doors. The fully fenced property features cross-deck capabilities for movement of trucks, trailers and materials across the site. Located within 25 miles of downtown Atlanta, the site has access to interstates 75 and 575, along with U.S. Route 41.

Closer look at portfolio’s other assets

• 2611 US Highway 42 South in Locust Grove, Ga., is a site with 5 usable acres and 10,357 square feet of warehouse space. Located south of downtown Atlanta, the property has direct access to GA-42 and proximity to Interstate 75.
• 550 Discovery Place in Mableton, Ga., has 4 usable acres with 11,760 square feet of warehouse space. The property is fully leased to a regional equipment rental dealer. It is adjacent to the Fulton County Airport and has proximity to interstates 20 and 285.
• 2000 Meredith Park Drive in McDonough, Ga., consists of 2 usable acres with 6,000 square feet of office and warehouse space. The building has two drive-in doors and one dock-high door. The property is leased to a national truck rental and transportation services company. Situated southeast of downtown Atlanta, the site offers a direct link to the city through Interstate 75 and GA-155.
• 4303 Communications Drive in Norcross, Ga., has 2 usable acres and a fully paved trailer parking yard. The property is fully leased to a national wholesale food distributor. It is connected to Atlanta via interstates 85 and 285.

Growing IOS platform

Alterra has acquired more than 500 IOS sites across 39 states, making it the largest owner and operator of IOS properties in the U.S. The firm’s investment strategy focuses on acquiring industrial outdoor storage locations within dense, infill logistics and transportation gateways.

In recent months, Alterra has refinanced parts of its portfolio by securing institutional capital to support its expansion across the U.S.

Alterra received $400 million in refinancing last month for a 99-property, 2.1 million-square-foot IOS portfolio across 27 states, including Georgia, from Truist Financial Corp. and KeyBank. The refinancing was structured using an equity pledge framework rather than traditional asset-level mortgages. Truist provided $225 million of the financing and KeyBank contributed the remaining $175 million.

Scott Whittle, Alterra’s chief financial officer, told Commercial Property Executive at the time that the transaction demonstrated the continued institutionalization of the IOS sector, as lenders have become more comfortable with the product. He said the equity pledge structure reduced legal and administrative complexity while preserving flexibility for acquisitions and dispositions.

In June, Alterra obtained a $244 million note from Blackstone Real Estate Debt Strategies in a debt deal that also used an equity pledge framework rather than a traditional mortgage structure. A 37-property portfolio spanning 27 markets, including Georgia, was used for collateral. It is comprised of 165 usable acres of IOS property and 806,000 square feet of warehouse space.

And in March, PGIM, in its first deal with Alterra, provided the firm with $103 million for the acquisition of a 23-asset portfolio across 18 markets.