Zenith IOS, JPMAM Seal $215M Credit Facility With KeyBank, Truist

Zenith IOS, JPMAM Seal $215M Credit Facility With KeyBank, Truist

As the industrial outdoor storage space continues to gain momentum, some key players are celebrating the next phase of their partnership with a fresh round of financing. 

Zenith Industrial Outdoor Storage and J.P. Morgan Asset Management (JPMAM) just secured a $215 million credit facility from KeyBank and Truist, Commercial Observer can first report. The facility finances Zenith’s second programmatic joint venture with JPMAM and will allow the continued scaling of its expanding IOS portfolio.

KeyBank served as administrative agent on the senior secured facility  — which includes an accordion feature, allowing the JV to increase its borrowing capacity as needed — and led the transaction, while Truist served as joint lead arranger. Cooper-Horowitz’s Justin Horowitz, Ben Knopf and Josh Tropper arranged the facility. 

“This credit facility marks another significant milestone in our ongoing partnership with J.P. Morgan Asset Management, and reflects the continued institutional belief in the IOS sector,” Ben Atkins, co-founder and CEO of Zenith, said in a statement. “The scale and flexibility of this financing will allow us to accelerate acquisitions, deepen our presence in key growth markets, and continue executing on our long-term investment strategy. We are excited to build upon the success of our first joint venture and further strengthen this second programmatic partnership.”

The facility refinances 34 IOS assets spanning 140 acres. The majority of the properties are spread across Southeast, South Central and Southwest markets, and the portfolio is almost fully leased at 99.6 percent.  

It’s not the first time the JV has teamed up with KeyBank. In February, the lender also provided a $130 million credit facility to Zenith and JPMAM for a portfolio of 14 IOS properties. 

Vinh Thai, Zenith IOS’ head of investments and Max Rodenborn, a vice president at the firm, led the deal alongside Atkins. KeyBank’s Jessica Lauerhass led the transaction on behalf of the lenders.  

“This transaction represents a natural extension of the successful framework established for Zenith’s first programmatic venture earlier this year,” Lauerhass said. “Our familiarity with the platform, combined with our confidence in Zenith’s management team, the sponsorship of J.P. Morgan Asset Management, and the institutionalizing dynamics of the IOS sector, positioned us to provide a scalable capital solution designed to support the venture’s continued growth.”

The same Cooper-Horowitz team of Horowitz, Knopf and Tropper also arranged the February credit facility. 

Horowitz said KeyBank’s continued commitment to Zenith and J.P. Morgan Asset Management “reflects the deepening institutional conviction in the IOS sector.” 

“KeyBank moved early to extend its relationship with the platform, underscoring the growing depth of capital and lender confidence in the asset class,” Horowitz said. “Transactions like this continue to demonstrate the maturation of IOS and its emergence as a recognized institutional real estate asset class.”

Cathy Cunningham can be reached at ccunningham@commercialobserver.com.