Alterra IOS, a player in the industrial outdoor storage (IOS) sector that has acquired over 400 sites nationwide, closed a $150 million loan facility from funds managed by Blue Owl Capital. The initial funding of the facility was collateralized by 21 properties in 12 states. Subsequent fundings of the loan commitment will support acquisitions for Alterra IOS Venture III, a closed-end fund with $925 million in equity commitments. The deal represents Blue Owl’s first financing in the IOS space.
“As institutional recognition of the industrial outdoor storage sector accelerates, transactions like this highlight the confidence lenders have in the long-term performance of the asset class,” Scott Whittle, chief financial officer and chief compliance officer at Alterra IOS, said. “We’re excited to complete our first financing with Blue Owl, whose thoughtful and collaborative approach compliments the strength of our platform as we continue scaling nationwide.”
Jesse Hom, chief investment officer for Blue Owl’s real assets platform, said, “Our investment in Alterra reflects Blue Owl’s focus on working with market-leading operators in high-growth, resilient sectors. We see strong, sustained demand for IOS assets and believe Alterra is well positioned to lead in this evolving space.”
The facility is backed by 106 usable acres of IOS properties located in key infill markets, including Atlanta, Charleston, Dallas-Fort Worth, Houston and Phoenix, among others. Nick Scribani and Jordan Roeschlaub of Newmark represented Alterra in the financing.
“Alterra IOS sought a creative financing solution for its continued growth through acquisitions, and we are proud to have helped establish this strategic relationship between a nimble institutional lender and the industry’s preeminent IOS owner-operator,” Scribani said.
