Realterm Buys Pennsylvania IOS Assets

Realterm has acquired two industrial outdoor storage facilities that total 102,220 square feet in Scranton, Pa. ID Logistics fully leases the properties.

The tenant owned one of the assets through one of its subsidiaries, Kane Logistics, according to Yardi Matrix. Realterm’s newly acquired assets feature a combined total of 19,755 square feet of office space, 61,922 square feet of terminal shallow-bay warehouse space and 20,543 square feet of maintenance space.

The properties are within 1 mile of one another, in Stauffer Industrial Park, a 390-acre industrial campus developed by The Greater Scranton Chamber of Commerce in 1970. The interchange between interstates 81, 476 and U.S. Highway 11 is about 6 miles away, while the Wilkes-Barre Scranton International Airport operates approximately 8 miles away.

Growing IOS demand attracts investor interest

Expanding logistics networks and increasing freight volumes are driving the demand for IOS across the country, according to a company statement. Rents across this niche sector skyrocketed 123 percent since 2020, while bulk warehouse premiums increased just 58 percent, as revealed by a Newmark report.

The entire U.S. comprises some 1.4 million acres of IOS—a land size equal to the state of Delaware—with a market capitalization of $200 billion, the same report reveals. Companies are eager to invest in the sector.

Earlier this year, Realterm paid $277 million for a 13-asset portfolio that comprises 631,604 square feet across the U.S. Since then, the company has reached $13.1 billion in assets under management with more than 400 investments, according to its website.

Blue Owl made its first pledge within the market last month, supplying Alterra IOS with a $150 million loan backed by 21 such properties. This debt allows Alterra to keep growing as it deploys capital from its IOS Venture III, a fund with $925 million in commitments.