Alterra Acquires 17 IOS Properties in 14 States

Alterra IOS, a leader in the industrial outdoor storage sector, has acquired 17 properties in a sale-leaseback deal with TruGreen, the nation’s largest lawn care company, with a total of 350,000 square feet of buildings across 44 acres in 15 U.S. markets.

The financial details were not disclosed but TruGreen has committed to a long-term leaseback arrangement for all 17 properties located in 14 states. Each property serves as a mission-critical site for TruGreen and all provide reliable in-place cash flow. Founded in 1973, TruGreen has more than 2.3 million customers and 5,000 employees in 276 locations.

The CBRE Capital Markets team in Chicago marketed the portfolio for TruGreen.

Chris White, vice president of industrial acquisitions at Alterra Property Group, said in a prepared statement the portfolio is a continuation of the firm’s strategy of acquiring well-located IOS assets in top MSAs.

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White and Charlie Totten, senior vice president of acquisitions at Alterra Property Group, facilitated what they described as a landmark deal for Alterra IOS, the industrial outdoor storage arm of Alterra Property Group, a Philadelphia-based real estate investment and development company. Alterra IOS entered the industrial subsector in 2016 and now has more than 200 IOS assets under management across more than 30 states. In May, company officials told Commercial Property Executive Alterra IOS was nearing a portfolio with $2.5 billion in assets, with about $850 million in acquisitions made between 2022 and mid-2023.

Earlier deals

The deal comes one week after another portfolio sale-leaseback transaction. Alterra IOS partnered with ConGlobal Industries, North America’s leading operator of intermodal, finished vehicle and depot service terminals to acquire four IOS properties totaling nearly 90 acres with more than 50,000 square feet of buildings in Louisiana, Texas, Florida and Illinois. Following the ConGlobal transaction, Totten said in a prepared statement they are seeing increased sale-leaseback activity across the industrial and outdoor storage asset classes, and he expects that to continue this year.

The TruGreen and ConGlobal deals are not the only sale-leasebacks Alterra IOS has made in recent years. In December 2022, Alterra IOS Manager, on behalf of its discretionary private real estate client, acquired a 14-property portfolio of IOS assets across eight states for more than $86 million in a sale-leaseback deal with Heniff Transportation Systems, a national bulk transportation provider.

TruGreen portfolio locations

The TruGreen portfolio spans 15 MSAs including Tampa, Fla.; Chicago; Charlotte, N.C.; as well as Austin and San Antonio in Texas. The locations are:

• 221 Lyon Lane, 17,000 square feet, Birmingham, Ala.
• 702 Klingsley Circle, 23,600 square feet, Plant City, Fla., in the Tampa MSA
• 301 SW Oralabor Road, 25,000 square feet, Ankeny, Iowa, in the Des Moines, Iowa, MSA
• 840 Commerce Parkway, 22,003 square feet, Carpentersville, Ill., in the Chicago MSA
• 7980 Kentucky Drive, 15,349 square feet, Florence, Ky., in the Cincinnati MSA
• 4355 E. River Road, 6,900 square feet, Oscoda, Mich.
• 14360 Ewing Ave., 21,100 square feet, Burnsville, Minn., in the Minneapolis MSA
• 10830 Quality Drive, 30,022 square feet, Charlotte
• 15 Delta Drive, 33,298 square feet, Londonderry, N.H., in the Boston MSA
• 9 Middlebury Blvd., 17,600 square feet, Randolph Township, N.J, Northern New Jersey MSA
• 4041 Thunderbird Lane, 22,661 square feet, Fairfield, Ohio, in the Cincinnati MSA
• 5150 Nike Drive, 14,600 square feet, Columbus, Ohio
• 461 Enterprise Drive, 23,310 square feet, Lewis Center, Ohio, Columbus MSA
• 161 Second St., 19,024 square feet, Wilkes Barre, Pa., Northeast Pennsylvania MSA
• 6855 Appling Farms Parkway, 33,564 square feet, Memphis, Tenn.
• 594 Greenhill Drive, 13,000 square feet, Round Rock, Texas, in the Austin MSA
• 4953 N. Stahl Park, 13,000 square feet, San Antonio