J.P. Morgan, Zenith Close $130M IOS Portfolio Refi
KeyBank provided the financing for 14 properties.
Zenith Industrial Outdoor Storage and institutional investors advised by J.P. Morgan Asset Management have closed on a $130 million senior secured credit facility provided by KeyBank to refinance a portfolio of IOS properties across the U.S.
The initial borrowing base includes 14 IOS properties totaling approximately 130 usable acres, with about 10 percent building coverage. The portfolio is 98 percent leased and geographically diversified. About 70 percent of the assets are located in high-growth Southeast markets. The balance are in the Mountain, Midwest and West Coast regions.
The facility was arranged by Justin Horowitz, Ben Knopf and Josh Tropper of Cooper Horowitz, a capital advisory firm that specializes in debt and equity placements. Jessica Lauerhass, senior banker and team lead based in Boston, led the lending team on behalf of KeyBank. It is Zenith’s first transaction with KeyBank.
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The borrower group was led by Zenith’s Vinh Thai and Max Rodenborn and a J.P. Morgan Asset Management team.
Horowitz, senior managing director at the New York-based firm, said in prepared remarks the financing reflects the continued institutionalization of the IOS sector.
Lauerhass also pointed to the growth in the IOS sector, noting in a prepared statement that the financing underscores KeyBank’s commitment to support high-quality IOS sponsors. She stated they worked with J.P. Morgan Asset Management and Zenith to structure a financing framework designed to complement the joint venture’s strategic objectives. Lauerhass added the deal positions KeyBank to pursue additional financing opportunities with the partners in the future.
More IOS joint ventures
Zenith IOS had also formed a second $700 million programmatic joint venture in August 2024 with institutional investors advised by J.P. Morgan Asset Management focused solely on the IOS sector. The duo had launched an earlier $700 million joint venture in February 2022, targeting IOS properties in high-growth, supply-constrained markets.
Over the past 12 months, Zenith’s second joint venture with J.P. Morgan Asset Management has transacted approximately $225 million in new investments. Earlier this month, the joint venture acquired an 11-asset IOS portfolio totaling 39 acres located across the Greater Phoenix metro. The portfolio is located within 7 miles of both Phoenix Sky Harbor International Airport and downtown Phoenix. The properties have direct accessibility to Interstates 10 and 18. Current tenants support a range of industrial uses, including building materials storage and distribution, contracting services, automotive and salvage operations, heavy equipment rentals and waste processing and disposal.
Zenith also recently acquired three portfolios in Texas with a total of eight assets for approximately $60 million. One of the portfolios comprised three assets totaling 20 acres in Houston acquired through a 10-year sale-leaseback transaction with C&D Scrap Metal.
Active in 2025
In May, the joint venture announced the completion of their latest industrial outdoor development—an 18-acre build-to-suit outdoor storage facility for Insurance Auto Auctions—in Sunshine Industrial Park in Clearwater, Fla. The joint venture acquired the 83-acre industrial park for $27.5 million. The property included seven warehouses and 30 acres of undeveloped land at the time of purchase. It is located approximately 24 miles west of Tampa, Fla., and 11 miles northwest of Clearwater, Fla. The St. Pete-Clearwater International Airport is approximately 3 miles away.
Two months earlier, the partners closed on the second and final tranche of a $120 million financing package originated by Washington Capital Management. The deal consisted of two loan pools involving regional portfolios that totaled 30 IOS assets nationwide.
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