Quilvest, Axis Launch $500M Industrial Outdoor Storage JV

The partnership made its first purchase, with the acquisition of a 16.8-acre site in San Antonio, Texas. Image courtesy of Quilvest Capital Partners

Quilvest Capital Partners has launched a joint venture with Axis IOS to purchase and operate an approximately $500 million portfolio of industrial outdoor storage properties across the U.S.

The joint venture’s strategy will be to operate and expand its portfolio in key logistics markets, targeting well-located IOS assets.

The partnership started its business plan by purchasing a 16.8-acre site in San Antonio. The property will be converted from a long-term owner/user to a multi-tenant IOS campus, expected to serve modular workforce, residential housing, heavy equipment vendors, as well as space rental product suppliers.

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Quilvest Capital Partners began investing in the IOS sector in 2021. As these assets have demonstrated their resilience across market cycles, the company is planning to expand its footprint in the market, Quilvest Capital Partners’ Partner & Co-Head of Real Estate, Barry Hammerman, said in prepared remarks.

Important players in the industry

Over the last several years the IOS sector has emerged to be at least a $200 billion market, continuing to attract institutional investors, development companies and real estate investment firms. Notable players in the industry include GreenPoint Partners, which launched a $500 million IOS platform in March. With GCM Grosvenor as its lead investor, the platform will target semi-truck parking and trailer storage assets across the U.S.

In February 2022, J.P. Morgan Global Alternatives and Zenith IOS formed a $700 million joint venture, to create a national IOS platform. The companies kicked off their partnership with the acquisition of four facilities in Dallas, with plans to amass a $1 billion IOS portfolio until 2024.