Blackstone Provides $190M Loan to Alterra IOS
This financing backs industrial outdoor storage properties across 22 states.
Alterra IOS, a leading player in the industrial outdoor storage sector, has closed on a $189 million loan from Blackstone Mortgage Trust Inc. The financing backs 49 IOS sites in 22 states across 235 acres acquired through the Alterra IOS Venture III fund.
The fund closed in May 2024 with $925 million in total commitment, surpassing its initial $750 million target and hitting its hard cap. With the closing of the Blackstone loan, Alterra has now secured more than $1 billion in financing for the fund. Other lenders previously providing financing to the fund include Truist Financial Corp., Bank of Montreal and Bank of America Corp., according to Bloomberg. It was Alterra’s first financing with the Blackstone team, which is actively deploying capital into compelling investment opportunities, including the IOS sector.
A vertically integrated investor, developer and operator of IOS, Alterra has acquired more than 300 sites in 36 states. The firm focuses on prime locations with access to essential infrastructure as well as properties that are situated in dense, infill industrial clusters surrounded by other IOS users. Last year, Alterra IOS was very active, purchasing 102 IOS properties.
One of its biggest milestones last year was closing on a 51-property portfolio sale to Peakstone Realty Trust in an off-market transaction valued at $490 million. The assets are located in 14 states and span 440 usable acres. The non-development portfolio, 45 of the 51 properties sold, was fully leased at closing.
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Justin Horowitz of Cooper Horowitz worked with Alterra IOS Venture III to market and source the Blackstone financing.
Alterra IOS deals
The loan finances the recent purchase of nearly 50 properties. Most were markets like Atlanta, Chicago and Tampa, Fla., Bloomberg reported.
One of the sites was 2201 E. Higgins Road in Elk Grove, Ill., in the Chicago market. The site, which has 4.8 usable acres and 35,000 square feet of warehouse space, was purchased in October with two other Chicago-area properties. The fully paved site is near O’Hare International Airport and within proximity of I-90, I-290 and I-294, providing access to the Midwest and beyond.
All three properties are fully leased to a global leader in the equipment rental industry. Alterra IOS also acquired 22634 S. Frontage Road East, a 4.4-usable-acre, paved site with 36,000 square feet of warehouse space that is near the city of Joliet, Ill. The location provides access to I-8- and I-55 and the CenterPoint Intermodal Center, the nation’s largest inland port. The third site in the portfolio is 300 W. Chicago Ave., a 4.9-usable acre property with 34,000 square feet of warehouse space. The fully paved site offers immediate highway access to Chicago and the Midwest points east and west through I-90 and I-94 and north and south through I-65.
More recently, Alterra IOS has expanded its industrial outdoor storage holdings in the Dallas-Fort Worth market to 10 assets with the January acquisition of four properties totaling nearly 35 usable acres. Each of the properties are located within 20 miles of downtown Dallas, providing access to the metro’s network of state and interstate highways, international airports and freight transportation.
In December, Alterra acquired three IOS sites totaling 23 usable acres in the Portland, Ore., market expanding the firm’s regional footprint to six assets. The sale included properties in Portland, Milwaukie, Ore., and Hubbard, Ore.
A month earlier, Alterra purchased a seven-property portfolio with assets in Dallas, Minneapolis, Indianapolis, Chicago, Cleveland, St. Louis and Nashville metro areas. The fully leased portfolio has a total of 23 usable acres.
Alterra also acquired four properties totaling 17 acres in the Greater Houston area in September.
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