Barings Forms $150M IOS Venture With Brennan

Barings is all in on the growing demand for industrial outdoor storage (IOS). 

The asset management firm has formed a programmatic joint venture with Brennan Investment Group with an initial $150 million commitment to acquire IOS assets across the U.S., Commercial Observer has learned.

Raymond Tiernan, director at Barings, said Brennan, as an experienced owner-operator of traditional industrial and IOS, was an ideal partner for the firm’s latest acquisition strategy. 

“We have been working closely with the Brennan team over the past several months to build a strategy and platform that will allow us to strategically scale,” Tiernan told CO via email. “The Brennan team has a deep roster of tenant relationships with IOS needs, which the venture can leverage to grow and operate the portfolio.”

Tiernan said there is “strong tenant demand” for IOS nationally and particularly in markets with “outsized population growth.” He said the big Texas Triangle markets of Austin, Dallas-Fort Worth, Houston and San Antonio along with the Mountain West region are a big focus for the venture. 

Barings and Brennan are targeting deal sizes in the $5 million to $15 million range per property. The venture is looking to deploy the equity over the next 12 to 18 months. 

“The Barings partnership marks a significant milestone for Brennan Investment Group as we expand our focus on Industrial Outdoor Storage,” Michael Brennan, co-founder and chairman of Brennan Investment Group, said in a statement. “We are well-positioned to create a premier IOS portfolio that meets the needs of today’s evolving economy and delivers long-term value for our investors.”

Andrew Coen can be reached at acoen@commercialobserver.com.