Philadelphia-based Alterra IOS Supervisor, on behalf of its discretionary personal fairness actual property consumer, has acquired a 14-property portfolio of business outside storage belongings throughout eight states for greater than $86 million in a sale-leaseback take care of Heniff Transportation Techniques LLC.
The portfolio is totally leased by Heniff, a nationwide bulk transportation supplier with almost 100 areas throughout the U.S. Heniff gives clients a variety of providers together with tank, rail transload, ISO depot, cleansing and upkeep options.
Matthew Pfeiffer, managing associate at Alterra IOS, stated in a ready assertion the Heniff sale-leaseback is a superb instance of Alterra using its totally discretionary fund to shut a sophisticated transaction on an outlined time interval for a nationwide tenant that wanted capital to finalize its bolt-on acquisition.
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The eight states within the portfolio are Florida, Georgia, Illinois, Ohio, Tennessee, Texas, Louisiana and Alabama. The 14 mission-critical areas function terminals, upkeep outlets and transload amenities in key industrial markets together with Savannah, Ga.; Chicago; Dallas-Fort Value; Houston; Memphis, Tenn.; Cincinnati; Cell, Ala.; Lakeland, Fla.; and Lake Charles, La.
Parker Pearson, vp of Alterra IOS, stated in a ready assertion the properties are crucial infrastructure belongings positioned in key logistics markets throughout the Central and Southeast U.S. He stated the agency is worked up to develop their relationship with the Heniff staff as they broaden their enterprise.
Bob Heniff, founder & CEO of Heniff Transportation, stated in ready remarks Heniff sought a counterparty that supplied a certainty of execution to finish a strategic acquisition. Citing the volatility of the capital markets and rate of interest fluctuations, Heniff stated it was crucial to work with a gaggle that has full discretion over its capital and deal instantly with key choice makers to get to closing.
IOS is rising
Alterra was one of many early entrants within the rising IOS subsector throughout the industrial property sector, having launched its technique in 2016. Alterra Property Group closed its Alterra IOS Enterprise II LP fund in March with $524 million in whole commitments, effectively past its unique fundraising objective of $400 million.
Over the previous six years, APG IOS has created tenant relationships within the transportation and logistics, car storage, tools rental, constructing supplies industries by the acquisition or growth of greater than 150 properties throughout 30 states. Sale lease-back transactions just like the Heniff deal is one among its IOS methods used to develop its platform.
IOS has gone from being a distinct segment usually owned by small personal buyers and mom-and-pop operators to a market estimated at $200 billion—and rising. Throughout the previous three years, IOS has been more and more attracting the curiosity of institutional buyers and personal fairness funds. Demand for IOS grew in the course of the pandemic as e-commerce exploded and continues to be a major a part of the availability chain, as extra companies search areas for last-mile supply and in addition need to be close to ports and main industrial corridors. Trucking and truck parking are the heaviest customers, notably by third-party logistics firms.
Heniff deal areas
Three of the properties within the Alterra IOS sale-leaseback take care of Heniff are in Texas, with two within the DFW market and one within the Houston industrial market: 12520 Bay Space Blvd., Pasadena, Texas, 7.32 acres; 15855 Wooden Drive, Channelview, Texas, 8.94 acres; and 716 a hundred and tenth St., Arlington, Texas, 4.31 acres. Two are within the Savannah port space of Backyard Metropolis, Ga., together with 6031 Commerce Court docket, 5.91 acres, and 6053 Commerce Court docket, 4.17 acres.
The remaining properties are:
- 3233 W. 167th St., Hazel Crest, Sick.; 19.5 acres (Chicago market)
- 2223 Hollywood Street, Joliet, Sick.; 8.75 acres (Chicago market)
- 2023 Tanker Drive, Sulphur, La.; 7.07 acres (Lake Charles market)
- 1198 Radcliff Street, Creola, Ala.; 9.97 acres (Cell market)
- 206 Telegraph Street, Prichard, Ala.; 9.36 acres (Cell market)
- 4963 Provident Drive, West Chester, Ohio; 6.46 acres (Cincinnati market)
- 3020 Kathleen Street, Lakeland.; 7.68 acres
- 1897 Harbor Ave., Memphis; 3.55 acres
- 2459 Channel Ave., Memphis; 35 acres