Alterra Acquires IOS Portfolio for $67M

Alterra IOS has acquired a 12-property Class A portfolio totaling 43.3 usable acres and more than 165,000 square feet of warehouse space for $67 million in an all-cash deal from an unidentified institutional private group.

The properties are located in major U.S. markets including Phoenix; Austin, Texas; Raleigh-Durham, N.C.; Tampa, Fla.; and Sacramento, Calif. They are fully leased by national equipment rental firm Herc Rentals and H&E Equipment Services, which Herc acquired in June.

Both are legacy Alterra tenants, according to Mark Gannon, senior vice president of acquisitions at Alterra IOS. Gannon said they are seeing rising demand for well-located, high-quality IOS properties as the equipment rental sector continues to consolidate. The properties in this portfolio have either been built-to-suit or renovated for the tenants within the past eight years.

---

READ ALSO: E-Commerce Continues to Steer Logistics Demand

---

Gannon noted these are all markets Alterra is currently active in, but it does meaningfully expand its national footprint, especially in the South, Southwest and West Coast markets.

The locations are:

• Kings Mountain, N.C. (Charlotte MSA), 7.0 usable acres with 20,950 square feet of warehouse space;
• Port Allen, La. (Baton Rouge MSA), 5.8 usable acres with 23,060 square feet of warehouse space;
• Malabar, Fla. (Palm Bay MSA), 4.9 usable acres with 19,700 square feet of warehouse space;
• Apache Junction, Ariz. (Phoenix MSA), 4.2 usable acres with 10,850 square feet of warehouse space;
• Conway, S.C. (Myrtle Beach MSA), 3.6 usable acres with 10,850 square feet of warehouse space;
• Wilmington, N.C. (Wilmington MSA), 3.0 usable acres with 14,400 square feet of warehouse space;
• Sacramento (Sacramento MSA), 3.0 usable acres with 9,440 square feet of warehouse space;
• Monroe, La. (Monroe MSA), 2.7 usable acres with 15,250 square feet of warehouse space;
• Austin (Austin MSA), 2.5 usable acres with 9,600 square feet of warehouse space;
• Ocala, Fla. (Ocala MSA), 2.4 usable acres with 15,110 square feet of warehouse space;
• Tampa (Tampa MSA), 2.4 usable acres with 9,440 square feet of warehouse space;
• Wake Forest, N.C. (Raleigh-Durham MSA), 1.6 usable acres with 10,800 square feet of warehouse space.

Deal brokered by M&M

Rory Shelby, senior director of investments, and Scott Gould, senior vice president, at Marcus & Millichap were the brokers on the deal and brought the transaction to Alterra’s attention. Alterra has worked with Shelby and Gould since 2020 and have since closed several deals with them, according to the Commercial Observer, which was the first to report the transaction.

“Alterra is seen as a trusted buyer from brokers such as M&M, due to their track record as a buyer and seller,” Gannon told Commercial Property Executive.

Growing portfolio

Gannon said Alterra, which has acquired more than 350 properties in 37 states since 2017, will continue to evaluate both single-asset and portfolio opportunities in the U.S. and Canada.

“Alterra plans to continue making acquisitions at a similar pace during the rest of 2025 and beyond,” Gannon told CPE.

The CO noted Alterra has a robust pipeline of planned deals and has been closing at least two transactions a week, ranging in size from $3 million to $70 million.

The portfolio acquisition comes one week after Alterra 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 refinanced three maturing loans secured by 64 IOS properties in 22 states. 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. Most of the properties were in markets like Atlanta, Chicago and Tampa, Fla.

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.

In one of its largest deals to date, Alterra sold 51 properties late last year to Peakstone Realty Trust for $490 million in an off-market transaction. The assets span 440 usable acres in 14 states.

Alterra started off 2025 with the acquisition of four assets in the DFW market. The properties, totaling nearly 35 usable acres, are each located within 20 miles of downtown Dallas.