Jadian Capital is planning to pour billions of dollars into the industrial outdoor storage (IOS) sector, and part of that includes its affiliate landing a $231 million loan to finance an existing 43-property portfolio that's spread out across 293 total acres.
Blackstone Real Estate Debt Strategies is providing the funding, with JLL arranging the deal.
The portfolio spans 19 total markets and 13 states — with 54 percent of the IOS properties focused in the Sunbelt. The remaining 37 percent are split between the Mid-Atlantic and Northeast regions. Some major tenants occupying space in the portfolio include Waste Management, Ryder, ABF Freight and United Rentals.
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All of the assets are within proximity to the following: major metro areas, highways, airports, seaports, rail systems and important logistical infrastructure.
The exact regions and names of the assets were not revealed.
"The portfolio's high-quality tenant roster, strategic infill locations and compelling supply-demand fundamentals made it a very attractive financing opportunity," Tyler Peck, JLL's managing director, said in a statement.
"We're seeing sustained interest in the IOS sector as investors and lenders seek to capitalize on the evolving needs of e-commerce, logistics and last-mile distribution users."
Additionally, in the press release, Dan Schuchinsky, managing director at Jadian Capital, revealed the company plans to invest $2 billion in the IOS space over the next couple of years. According to Jadian, it operates more than $800 million in total IOS assets through over 80 properties.
A recent report by Colliers revealed that IOS has been benefiting from a surge in capital and expansion. However, it warns that investors must consider how tax reassessments and insurance costs may affect projected rents, as well as take a dive into zoning risks. Failing to do enough due diligence can lead to distress, the CRE firm noted.
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Anthony Russo
Anthony Russo has been contributing to GlobeSt. since July 2024. Along with CRE, his financial background expands to capital markets, the economy, and consumer issues. Previously, he has written for CapitalWatch and was a senior reporter for The US Sun.
