Industrial outdoor storage provider Alterra IOS has announced closed US $189 million in financing from Blackstone Mortgage Trust.
The funding secures assets acquired during Alterra’s latest venture, one of over 300 sites the industrial outdoor storage (IOS) platform has acquired across the United States.
We are thrilled to close our first financing with the Blackstone team and to add another leading institution to a growing list of capital providers supporting our IOS platform.
Total lender financing for the fund which closed in May 2024 with US $925 million of commitments now exceeds US $1 billion (significantly above the original fundraising target of US $750 million).
The funding from Blackstone Mortgage Trust will support 49 IOS sites across 22 states, totaling approximately 235 usable acres.
Scott Whittle, Chief Financial Officer for Alterra IOS, says: “We are thrilled to close our first financing with the Blackstone team and to add another leading institution to a growing list of capital providers supporting our IOS platform. This closing underscores the strength of our portfolio and the continued demand for well-located industrial outdoor storage assets.”
Austin Pena, Executive Vice President of Investments at Blackstone Mortgage Trust, adds, “Blackstone Mortgage Trust is actively deploying capital into compelling investment opportunities in today’s market, including the IOS sector, which benefits from similar secular tailwinds to logistics, one of Blackstone’s highest conviction themes. We are excited to provide this financing solution to Alterra and support the next phase of growth for their IOS platform.”
This financing supplements several significant transactions for the Alterra team in 2024, including the sale of an institutional-grade portfolio of 51 IOS assets to Peakstone Realty Trust in November for US US $490 million.
Alterra is one of the largest owners of IOS in the country, having acquired more than 300 properties in 36 states. As a vertically integrated investor, developer, and operator of IOS, Alterra is uniquely positioned to serve companies in search of national connectivity to store equipment, machinery, vehicle fleets, shipping containers, building materials, retail inventory, and more.
Justin Horowitz of Cooper Horowitz worked with Alterra IOS Venture III to market and source the financing.
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