Zenith IOS Lands $120M for 2 Portfolios

In partnership with institutional investors advised by J.P. Morgan Asset Management, Zenith IOS has closed on the second and final tranche of a $120 million financing package originated by Washington Capital Management.

The deal consists of two loan pools involving regional portfolios that together total 30 IOS assets nationwide. The properties are geographically diversified across the company’s target markets, in infill locations near major transportation corridors.

Justin Horowitz of Cooper Horowitz LLC, a family-owned capital advisory firm that specializes in debt and equity placement across multiple types of real estate nationally, arranged the financing.

In August, Zenith formed a $700 million joint venture with institutional investors advised by J.P. Morgan Asset Management, focused solely on IOS properties in the U.S. It was the duo’s second such partnership, as they previously joined forces in 2022 for a similar endeavor.

Surge in activity

The IOS sector has been notably active over the winter, with multiple sizable deals.

In February, Alterra IOS closed on a $189 million loan from Blackstone Mortgage Trust Inc. The financing backed 49 IOS sites totaling 235 acres across 22 states, all acquired through the Alterra IOS Venture III fund. The Blackstone note brought the fund to more than $1 billion in total financing.

Just a month earlier, Alterra had acquired four IOS properties in the Dallas–Fort Worth metro. The sellers and prices were not disclosed.

And shortly into the new year, Brookfield Asset Management sold a 13-property, 631,600-square-foot IOS portfolio to Realterm for more than $277 million. The properties are located in seven key logistics markets, including the Inland Empire, Chicago, Seattle, Northern New Jersey, the Bay Area and Orlando.