Investors Target Outdoor Areas Aimed at Tenants in Need of Storing Trucks, Equipment
Alterra IOS paid $22.4 million for a collection of industrial outdoor storage properties in metro Atlanta, boosting the investor’s exposure to a niche sector that’s in demand from a wide variety of customers.
The three properties cover a total of 28 acres and are located in the northeastern and southern suburbs of Atlanta. The sellers were J&E Real Estate Investments, Harcon Inc. and Industrial Storage Fund III.
Industrial outdoor storage areas provide space for the owners of tractor trailers, heavy equipment and construction materials to store company property. The building type has high demand but is in low supply due to difficulties obtaining land and zoning permits, according to the Urban Land Institute.
Manulife Investment Management and Foundry Commercial formed a joint venture to acquire, develop and lease industrial outdoor storage areas in the Southeast. Other institutional investors have also targeted the niche segment, including TPG Angelo Gordon and Fortress Investment Group.
Alterra, based in Philadelphia, closed the $925 million Alterra IOS Venture III fund in May, targeted to the sector. The fund attracted a diverse group of investors, including pensions, sovereign wealth funds, endowments and high-net-worth individuals.
In the recent deal in the Atlanta area, Alterra acquired the following properties:
• 2620 Campbell Blvd. in Ellenwood, Georgia, sold by J&E Real Estate Investments, based in Atlanta, for $12.5 million.
• 498 Tuggle Greer Drive in Buford, Georgia, sold by Harcon Inc. of Alpharetta, Georgia, for $6 million.
• Liberty Industrial Park in McDonough, Georgia, was sold by Atlanta-based Industrial Storage Fund III for nearly $3.9 million.
The Liberty Industrial Park property is under construction and is expected to open in the fourth quarter, Alterra Senior Vice President Charlie Totten said in a news release. It will include two separate storage areas covering a total of 26,000 square feet and feature three separate entrances.
The Ellenwood property is in the Interstate 675 corridor near Hartsfield-Jackson International Airport, the location of the largest concentration of truck terminals in metro Atlanta, including Old Dominion Freight Line and Southeastern Freight Line. The 10.5-acre paved industrial outdoor storage property includes a 24,500-square-foot maintenance building.
The Buford property is a 5.3-acre paved site with access to interstates 85 and 985 and includes 39,000 square feet of warehouse and office space.
For the Record
Park My Truck USA facilitated the sale of the Liberty Industrial Park property, and Steven Bridges and Nat Weikert at OnPace Partners are representing Alterra on leasing for that property. Christian Samartino at Piedmont Properties and Jordan Camp at Oakley Brokerage Partners facilitated the sale of the Ellenwood property. Mendy Ruder at Lee & Associates represented Alterra on the Buford property and will represent Alterra on leasing for that property. James Freeman at Rittenhouse Law was legal counsel on the Buford sale.
By Andy Peters, CoStar News
