An Industrial Outdoor Storage Facility Sells for $51M in Southern California

Why does Santa have to keep his sleigh in a storage unit? Because the cost of a garage is two deer. 

In that way, Alterra IOS, the Philadelphia-based investment arm of Alterra Property Group specializing in industrial outdoor storage (IOS), is making Kris Kringle’s Southern California operations a little easier this year. The firm has acquired a 15.2-acre storage facility, complete with a new 25,910-square-foot maintenance building, in the Inland Empire’s Jurupa Valley for $51 million. 

The deal for the property, at 5600 Market Street, was a long-term sale-leaseback with Michigan-based Wheeler Trucking, property records show. Chase MacLeod & Company brokered the deal. The site is particularly large for an IOS facility, which usually run between 3 to 5 acres, according to Alterra. 

“This acquisition sets a new standard for single-site IOS transactions, particularly in Southern California where sites of this acreage have become sparse,” Matt McNutt, vice president of acquisitions at Alterra, said in a statement. 

The acquisition also grows the firm’s portfolio in Southern California to 11 properties. It has acquired more than 300 facilities across more than 35 states in total.

The deal for 5600 Market Street comes hot on the heels of Alterra’s $490 million off-market sale of 51 IOS properties across 14 states to Peakstone Realty Trust in November. Over the past seven years, Alterra has raised $1.45 billion in equity to fund its acquisitions, while its IOS Venture Fund III closed earlier this year with $925 million in total commitments, well above its $750 million target. 

Earlier this month, at Commercial Observer’s Breakthrough Awards, CO presented the Innovation in Industrial Award to Alterra IOS for its redevelopment of 6110 Passyunk Avenue in its hometown of Philadelphia, having transformed the 5-acre site into a modern soil remediation facility. 

Nick Trombola can be reached at ntrombola@commercialobserver.com.