Outpost Buys 2 IOS Properties for $69M
Forbright Bank provided financing for the acquisition.
Outpost has acquired two industrial outdoor storage properties totaling approximately 15 acres in Newark and Kearny, N.J., for $68.5 million. The seller was a joint venture of Meadow Partners and Criterion Group.
NAI James E. Hanson represented the sellers in the transaction while JLL represented Outpost and arranged $52.2 million in acquisition funding through Forbright Bank.
The Newark property is located at 2120 McCarter Highway. The asset is on 7 acres with space for 198 containers and 25 tractors. The property is leased to a Fortune 100 tenant under a new lease executed in conjunction with Outpost’s acquisition.
Located at 76 Central Ave. in Kearny, the property sits on about 8 acres and operates as a trailer storage and parking facility. It has space for 212 containers, 70 tractors and 66 trailers and features about 4,000 square feet of improvements, including office space and a maintenance bay. The facility reportedly offers immediate lease-up and value-add potential.
Following the acquisition, Outpost plans to implement site improvements including paving, lighting, security and access enhancements at both assets.
Both properties are near the intersection of Interstate 95, Interstate 78, Interstate 280, Route 3 and Route 21, putting them in close proximity to Port Newark-Elizabeth Marine Terminal and Newark Liberty International Airport.
In a prepared statement, NAI James E. Hanson’s Avanzato commented that the portfolio attracted a deep buyer pool, evidencing strong demand for premier IOS sites in New Jersey. He added that although a few years ago sites like these would have drawn only a handful of local bidders, today well-capitalized national platforms are competing for scale in North Jersey, and that such competition shows up in pricing.
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Senior Managing Directors Jordan Avanzato and Christopher Todd, along with Managing Director William Ericksen of NAI James E. Hanson’s Institutional Services Group, Capital Markets & Leasing Team, represented the sellers.
JLL Managing Directors Jason Lundy and Nick Stefans, Senior Analyst Luke Ceccoli and Vice Chairman Dean Brody handled transaction advisory. Senior Managing Director Michael Klein, Senior Director Max Custer and Senior Analyst Michael Donohoe arranged the acquisition financing.
IOS activity picks up nationally
Institutional investment in IOS has expanded nationwide over the last few years. Last month, Brennan and Barings secured a $150 million acquisition credit facility to support the aggregation of an IOS portfolio, starting with five properties across Denver, Houston and Austin, Texas.
Alterra IOS, the nation’s largest IOS property owner, has also remained active in the sector. In July, the company secured a $400 million refinancing from Truist Financial Corp. and KeyBank for a 99-property portfolio across 27 states.
Sagard Real Estate and Canada-based La Caisse launched an IOS investment platform targeting infill properties in critical U.S. seaport markets this past March. The partnership planned to invest at least $360 million in this effort, beginning with a fully leased IOS asset in the Meadowlands submarket in northern New Jersey.
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