Alterra IOS Announces Closing of $189M Loan Commitment from Blackstone Mortgage Trust

Rhea-AI Summary

Alterra IOS has secured a $189 million loan commitment from Blackstone Mortgage Trust (NYSE: BXMT), bringing their total institutional lending to over $1 billion. The funding supports 49 IOS sites across 22 states, covering approximately 235 usable acres.

This financing follows Alterra's fund closing at $925 million in May 2024, exceeding their original $750 million goal. The company recently sold 51 IOS assets to Peakstone Realty Trust for $490 million in November 2024.

Alterra IOS has established itself as one of the nation's largest IOS owners, with over 300 properties across 36 states. The company serves businesses requiring storage for equipment, machinery, vehicle fleets, shipping containers, and building materials.

Positive

• Secured $189M loan commitment from Blackstone Mortgage Trust
• Fund exceeded fundraising goal, closing at $925M vs $750M target
• Successfully sold 51 IOS assets for $490M to Peakstone Realty Trust
• Portfolio expansion to over 300 properties across 36 states

Negative

• None.

Insights

Financial Analyst

This $189 million loan commitment to Alterra IOS marks a strategic expansion for Blackstone Mortgage Trust into the rapidly growing industrial outdoor storage sector. The financing package, supporting 49 sites across 22 states, demonstrates BXMT's ability to identify and capitalize on emerging opportunities in commercial real estate lending.

The deal's significance extends beyond its size. IOS assets are experiencing strong secular tailwinds similar to the logistics sector, one of Blackstone's highest-conviction investment themes. These properties, characterized by low building coverage and large yard spaces, serve essential functions in the supply chain, including vehicle fleet storage, equipment staging, and building materials storage. The 235 usable acres in this portfolio provide critical infrastructure for transportation, logistics, and construction sectors.

For BXMT shareholders, this transaction offers several positive implications. First, it diversifies the loan portfolio into a defensive real estate segment with strong fundamentals and stable cash flows. Second, the institutional-grade quality of Alterra's portfolio - evidenced by their recent $490 million asset sale to Peakstone Realty Trust - suggests a strong underlying collateral position. Third, the deal aligns with BXMT's strategy of focusing on high-quality, institutional assets in major markets backed by experienced sponsors.

The broader context of Alterra's $925 million fund closing above its target and reaching its hard cap indicates robust institutional demand for IOS assets. This market validation, combined with Alterra's track record of managing over 300 properties across 36 states, provides additional comfort regarding the loan's risk profile.

Financing brings total secured from institutional lending partners across Alterra’s fully discretionary IOS funds to over $1B

PHILADELPHIA--(BUSINESS WIRE)-- Alterra IOS (“Alterra”), a prominent player in the industrial outdoor storage (“IOS”) sector that has acquired over 300 sites nationwide, today announced the closing of $189 million in financing from Blackstone Mortgage Trust Inc. (NYSE: BXMT). The funding was secured for assets acquired in Alterra’s latest venture. Alterra has now secured over $1 billion in lender financing for the fund, which closed in May 2024 at $925 million in total commitments, exceeding the original fundraising goal of $750 million and reaching its hard cap.

The funding from Blackstone Mortgage Trust backs 49 IOS sites across 22 states, totaling approximately 235 usable acres.

“We are thrilled to close our first financing with the Blackstone team and to add another leading institution to a growing list of capital providers supporting our IOS platform," said Scott Whittle, Chief Financial Officer for Alterra IOS. “This closing underscores the strength of our portfolio and the continued demand for well-located industrial outdoor storage assets.”

Austin Pena, Executive Vice President of Investments at Blackstone Mortgage Trust said, “Blackstone Mortgage Trust is actively deploying capital into compelling investment opportunities in today’s market, including the IOS sector, which benefits from similar secular tailwinds to logistics, one of Blackstone’s highest conviction themes. We are excited to provide this financing solution to Alterra and support the next phase of growth for their IOS platform.”

This financing comes on the heels of several significant transactions for the Alterra team in 2024, including the sale of an institutional-grade portfolio of 51 IOS assets to Peakstone Realty Trust in November for $490 million. Alterra is one of the nation’s largest owners of IOS, having acquired more than 300 properties in 36 states across the U.S. As a vertically integrated investor, developer, and operator of IOS, Alterra is uniquely positioned to serve companies in search of national connectivity to store equipment, machinery, vehicle fleets, shipping containers, building materials, retail inventory, and more.

Justin Horowitz of Cooper Horowitz worked with Alterra IOS Venture III to market and source the financing.

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 300 properties across 36 states as of Q4 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 Blackstone Mortgage Trust

Blackstone Mortgage Trust (NYSE: BXMT) is a real estate finance company that primarily originates senior loans collateralized by commercial real estate in North America, Europe, and Australia, as well as other real estate credit investments. Our investment objective is to preserve and protect shareholder capital while producing attractive risk-adjusted returns primarily through dividends generated from current income. Our portfolio is composed primarily of loans secured by high-quality, institutional assets in major markets, sponsored by experienced, well-capitalized real estate investment owners and operators. These loans are financed in a variety of ways, depending on our view of the most prudent strategy available for each of our investments. We are externally managed by BXMT Advisors L.L.C., a subsidiary of Blackstone. Further information is available at www.bxmt.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250213640635/en/

media@alterraproperty.com

jeffrey.kauth@blackstone.com

Source: Alterra IOS

FAQ

What is the value of BXMT's recent loan commitment to Alterra IOS?

Blackstone Mortgage Trust (BXMT) provided a $189 million loan commitment to Alterra IOS.

How many properties does the BXMT financing cover for Alterra IOS?

The BXMT financing covers 49 IOS sites across 22 states, totaling approximately 235 usable acres.

What was Alterra IOS's total fund size in May 2024?

Alterra IOS's fund closed at $925 million in May 2024, exceeding its original fundraising goal of $750 million.

How much did Alterra IOS receive from the Peakstone Realty Trust portfolio sale in November 2024?

Alterra IOS sold 51 IOS assets to Peakstone Realty Trust for $490 million in November 2024.

What is Alterra IOS's total secured institutional lending amount across its funds?

Alterra IOS has secured over $1 billion in total financing from institutional lending partners across its fully discretionary IOS funds.