PGIM Provides $103M Credit Facility to Alterra IOS Secured By 23 U.S. Assets

Alterra IOS keeps making moves to bolster its U.S. industrial portfolio. 

The firm received a $103 million credit facility Monday secured by 23 industrial outdoor storage (IOS) properties across 18 U.S. markets that will finance future IOS acquisitions, Commercial Observer can first report. 

PGIM’s real estate arm provided the debt on the deal, while Justin Horowitz of Cooper-Horowitz arranged the financing. 

The transaction is Alterra IOS’s first debt financing with PGIM. 

Scott Whittle, chief financial officer at Alterra, called the deal with PGIM “an important milestone in the continued institutionalization of the IOS sector,” in a statement. 

“PGIM’s partnership underscores growing confidence in IOS as a durable, long-term asset class,” Whittle added. 

Justin Levitt, managing director and head of the Northeast and Midwest regions for U.S. debt at PGIM, noted in his own statement that the IOS sector is currently benefiting from surging tenant demand and a lack of new supply on the marketplace, patterns which are juicing returns for owners, primarily across vacant or underutilized sites in high-density urban markets ripe for logistics development. 

“This transaction underscores our conviction in the sector,” he added. 

Brian Pascus can be reached at bpascus@commercialobserver.com