Alterra IOS has acquired a 12-property Class A portfolio totaling 43.3 usable acres and greater than 165,000 sq. ft of warehouse area for $67 million in an all-cash deal from an unidentified institutional non-public group.
The properties are positioned in main U.S. markets together with Phoenix; Austin, Texas; Raleigh-Durham, N.C.; Tampa, Fla.; and Sacramento, Calif. They’re absolutely leased by nationwide tools rental agency Herc Leases and H&E Tools Providers, which Herc acquired in June.
Each are legacy Alterra tenants, based on Mark Gannon, senior vp of acquisitions at Alterra IOS. Gannon stated they’re seeing rising demand for well-located, high-quality IOS properties because the tools rental sector continues to consolidate. The properties on this portfolio have both been built-to-suit or renovated for the tenants inside the previous eight years.
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Gannon famous these are all markets Alterra is at present energetic in, nevertheless it does meaningfully develop its nationwide footprint, particularly within the South, Southwest and West Coast markets.
The places are:
Kings Mountain, N.C. (Charlotte MSA), 7.0 usable acres with 20,950 sq. ft of warehouse area;
Port Allen, La. (Baton Rouge MSA), 5.8 usable acres with 23,060 sq. ft of warehouse area;
Malabar, Fla. (Palm Bay MSA), 4.9 usable acres with 19,700 sq. ft of warehouse area;
Apache Junction, Ariz. (Phoenix MSA), 4.2 usable acres with 10,850 sq. ft of warehouse area;
Conway, S.C. (Myrtle Seashore MSA), 3.6 usable acres with 10,850 sq. ft of warehouse area;
Wilmington, N.C. (Wilmington MSA), 3.0 usable acres with 14,400 sq. ft of warehouse area;
Sacramento (Sacramento MSA), 3.0 usable acres with 9,440 sq. ft of warehouse area;
Monroe, La. (Monroe MSA), 2.7 usable acres with 15,250 sq. ft of warehouse area;
Austin (Austin MSA), 2.5 usable acres with 9,600 sq. ft of warehouse area;
Ocala, Fla. (Ocala MSA), 2.4 usable acres with 15,110 sq. ft of warehouse area;
Tampa (Tampa MSA), 2.4 usable acres with 9,440 sq. ft of warehouse area;
Wake Forest, N.C. (Raleigh-Durham MSA), 1.6 usable acres with 10,800 sq. ft of warehouse area.
Deal brokered by M&M
Rory Shelby, senior director of investments, and Scott Gould, senior vp, at Marcus & Millichap had been the brokers on the deal and introduced the transaction to Alterra’s consideration. Alterra has labored with Shelby and Gould since 2020 and have since closed a number of offers with them, based on the Industrial Observer, which was the primary to report the transaction.
“Alterra is seen as a trusted purchaser from brokers reminiscent of M&M, as a consequence of their monitor file as a purchaser and vendor,” Gannon instructed Industrial Property Govt.
Rising portfolio
Gannon stated Alterra, which has acquired greater than 350 properties in 37 states since 2017, will proceed to guage each single-asset and portfolio alternatives within the U.S. and Canada.
“Alterra plans to proceed making acquisitions at the same tempo throughout the remainder of 2025 and past,” Gannon instructed CPE.
The CO famous Alterra has a sturdy pipeline of deliberate offers and has been closing a minimum of two transactions every week, ranging in dimension from $3 million to $70 million.
The portfolio acquisition comes one week after Alterra closed on a $343.6 million mortgage from Truist Monetary Corp. and Financial institution of Montreal on behalf of Alterra IOS Enterprise II, a closed-end fund with $524 million in fairness commitments. The funds refinanced three maturing loans secured by 64 IOS properties in 22 states. Along with refinancing the maturing loans, the brand new facility improved total borrowing prices throughout the agency’s portfolio.
Alterra has now raised greater than $1.5 billion in institutional financing throughout its numerous ventures, complementing $1.45 billion in fairness raised for its closed-end funds Alterra IOS Enterprise II and Enterprise III, which has $925 million of fairness commitments.
In February, Blackstone Mortgage Belief Inc. originated a $189 million mortgage that backed 49 IOS websites in 22 states throughout 235 acres acquired via the Enterprise III fund. A lot of the properties had been in markets like Atlanta, Chicago and Tampa, Fla.
A vertically built-in investor, developer and operator of IOS, Philadelphia-based Alterra focuses on prime places with entry to important infrastructure in addition to properties which are located in dense, infill logistics and transportation gateways. The agency targets low-building protection websites with massive, stabilized yard area to accommodate quite a lot of makes use of reminiscent of car, materials and tools storage.
In one in every of its largest offers up to now, Alterra bought 51 properties late final 12 months to Peakstone Realty Belief for $490 million in an off-market transaction. The belongings span 440 usable acres in 14 states.
Alterra began off 2025 with the acquisition of 4 belongings within the DFW market. The properties, totaling almost 35 usable acres, are every positioned inside 20 miles of downtown Dallas.
