Alterra IOS and J.P. Morgan Asset Management Announce Sale of 51-Property Industrial Outdoor Storage Portfolio

November 05, 2024 at 08:21 AM EST

Transaction valued at $490 million, represents approximately 20% of Alterra IOS’ assets under management

Alterra IOS, a prominent player in the industrial outdoor storage (IOS) sector that has acquired over 280 sites nationwide, today announced the sale of a 51-property portfolio to Peakstone Realty Trust in an off-market transaction valued at $490 million. The portfolio, which spans 14 states, was purchased from a joint venture between Alterra IOS and institutional investors advised by J.P. Morgan Asset Management. It includes 45 operating sites and six redevelopment sites. The operating sites are 100% leased to a diverse range of leading national and regional tenants.

“This significant portfolio sale to a publicly traded REIT underscores the success of Alterra’s investment strategy, which we have refined for nearly a decade, and further advances the institutionalization of the IOS asset class,” said Leo Addimando, CEO and Managing Partner and Matt Pfeiffer, CIO and Managing Partner at Alterra. “We believe this is just the beginning as more institutional investors seek scale in the highly fragmented IOS sector, and we look forward to continuing to pursue growth opportunities as market fundamentals remain strong.”

“This portfolio transaction represents an important milestone in the execution of one of our highest conviction strategies,” said Preston Meyer, Managing Director and Portfolio Manager at J.P. Morgan Asset Management.

Alterra IOS has raised $1.45 billion in equity from institutional investors in the past seven years. In May 2024, Alterra IOS closed Alterra IOS Venture III, LP (“Venture III”) with $925MM in total commitments, exceeding the original fundraising goal of $750MM and surpassing the hard cap of $850MM. The raise was the firm’s latest milestone for its IOS investment strategy launched in 2016.

About Alterra IOS

Alterra’s industrial real estate platform, Alterra IOS, is dedicated to providing real estate solutions through property acquisition, development, management & leasing for tenants in the heavy industrial & outdoor storage space. Focused on low-building coverage sites with large, stabilized yard space to accommodate an array of uses such as vehicle, material, and equipment storage, Alterra brings an institutional comprehension of the municipal & logistical complexities in securing mission-critical real estate for the often-overlooked sectors of the U.S. industrial landscape. Over the past six years, Alterra IOS has created tenant relationships in the transportation & logistics, vehicle storage, equipment rental, and building materials industries through the acquisition or development of over 280 properties across 30+ states as of Q3 2024. The dedicated team of investment, development, construction, and asset management professionals provide tenants the resources to grow and improve their businesses through site selection, development, and/or sale-leaseback transactions.

About J.P. Morgan Asset Management

J.P. Morgan Asset Management is a global leader in alternatives, with over 60 years of experience managing alternative investments, including real estate, private equity, private credit, liquid alternative products, infrastructure, transport, hedge funds, and forestry. As of September 30, 2024, J.P. Morgan oversees more than $400 billion in alternative assets.

With $3.5 trillion in assets under management as of September 30, 2024, J.P. Morgan Asset Management serves institutions, retail investors, and high-net-worth individuals across every major market globally. The firm offers comprehensive investment management services in equities, fixed income, alternatives, and liquidity. For more information, visit www.jpmorganassetmanagement.com. J.P. Morgan Asset Management is the marketing name for the asset management businesses of JPMorgan Chase & Co. and its affiliates worldwide.