Cerberus JV Lands Financing for 2.3 MSF IOS Portfolio
Outour Storage Investments and affiliates of Cerberus Capital Management have secured a first mortgage loan for a 2.3 million-square-foot portfolio of eight industrial outdoor storage facilities spread throughout seven metropolitan areas.
Franklin Templeton’s Clarion Partners Real Estate Income Fund issued the loan. Eastdil Secured brokered the deal.
Spanning more than 50 acres, the collection is scattered throughout metro Chicago, Phoenix, Las Vegas, Houston, the Inland Empire, Dallas-Fort Worth and Atlanta. Featuring high-end specifications, the portfolio has a roster of national and regional credit tenants, Clarion Partners Portfolio Manager Brent Jenkins said in prepared remarks.
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Clarion Partners’ first investment into the IOS sector closed earlier this month. The fund acquired a fully leased, 7.6-acre property at 15550 Export Plaza Drive in Houston. A waste services company occupies the recently renovated facility and will continue to do so for roughly another seven years. Clarion’s industrial footprint in the market stood at nearly 9.5 million square feet.
Outour Storage Investments is no stranger to doing business with affiliates of Cerberus Capital Management. In December 2022, Outour secured a $500 million refinancing loan from BAWAG P.S.K. for an industrial portfolio. Cerberus bought the Australian bank for $3.4 billion in 2007.
IOS properties are quintessential for industries such as logistics, construction, equipment rental and transportation, Andrew Skydell, managing partner at Simi Capital Group, previously told Commercial Property Executive. Fueled by the booming e-commerce market, demand for delivery vehicle storage skyrocketed, impacting the logistics sector.
Debt flows for industrial outdoor storage portfolios
Despite uncertainty around the Fed rate, debt continues to flow into IOS properties. Just this month, Zenith IOS and institutional investors advised by J.P. Morgan Asset Management secured a financing package of $120 million from Washington Capital Management. The debt financed a total of 30 IOS properties.
Last month, Blackstone Mortgage Trust issued $190 million to Alterra IOS. The financing backed 49 IOS properties spanning 235 acres in 22 states. Alterra had acquired the assets through its Venture III fund.
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