Heniff Transportation Programs location. Picture courtesy of Alterra IOS Supervisor
Philadelphia-based Alterra IOS Supervisor, on behalf of its discretionary personal fairness actual property consumer, has acquired a 14-property portfolio of business outside storage belongings throughout eight states for greater than $86 million in a sale-leaseback cope with Heniff Transportation Programs LLC.
The portfolio is totally leased by Heniff, a nationwide bulk transportation supplier with almost 100 places throughout the U.S. Heniff gives prospects a variety of providers together with tank, rail transload, ISO depot, cleansing and upkeep options.
Matthew Pfeiffer, managing accomplice at Alterra IOS, mentioned in a ready assertion the Heniff sale-leaseback is a good instance of Alterra using its totally discretionary fund to shut a sophisticated transaction on an outlined time interval for a nationwide tenant that wanted capital to finalize its bolt-on acquisition.
READ ALSO: Tendencies That Will Form Industrial Actual Property in 2023
The eight states within the portfolio are Florida, Georgia, Illinois, Ohio, Tennessee, Texas, Louisiana and Alabama. The 14 mission-critical places function terminals, upkeep retailers and transload services in key industrial markets together with Savannah, Ga.; Chicago; Dallas-Fort Value; Houston; Memphis, Tenn.; Cincinnati; Cell, Ala.; Lakeland, Fla.; and Lake Charles, La.
Parker Pearson, vp of Alterra IOS, mentioned in a ready assertion the properties are crucial infrastructure belongings positioned in key logistics markets throughout the Central and Southeast U.S. He mentioned the agency is worked up to develop their relationship with the Heniff group as they broaden their enterprise.
Bob Heniff, founder & CEO of Heniff Transportation, mentioned in ready remarks Heniff sought a counterparty that offered a certainty of execution to finish a strategic acquisition. Citing the volatility of the capital markets and rate of interest fluctuations, Heniff mentioned it was crucial to work with a bunch that has full discretion over its capital and deal straight with key choice makers to get to closing.
IOS is rising
Alterra was one of many early entrants within the rising IOS subsector inside the industrial property sector, having launched its technique in 2016. Alterra Property Group closed its Alterra IOS Enterprise II LP fund in March with $524 million in whole commitments, properly past its unique fundraising aim of $400 million.
Over the previous six years, APG IOS has created tenant relationships within the transportation and logistics, car storage, tools rental, constructing supplies industries by means of the acquisition or improvement of greater than 150 properties throughout 30 states. Sale lease-back transactions just like the Heniff deal is one in every of its IOS methods used to develop its platform.
IOS has gone from being a distinct segment typically owned by small personal traders and mom-and-pop operators to a market estimated at $200 billion—and rising. In the course of the previous three years, IOS has been more and more attracting the curiosity of institutional traders and personal fairness funds. Demand for IOS grew in the course of the pandemic as e-commerce exploded and continues to be a big a part of the provision chain, as extra companies search places for last-mile supply and in addition need to be close to ports and main industrial corridors. Trucking and truck parking are the heaviest customers, notably by third-party logistics firms.
Heniff deal places
Three of the properties within the Alterra IOS sale-leaseback cope with Heniff are in Texas, with two within the DFW market and one within the Houston industrial market: 12520 Bay Space Blvd., Pasadena, Texas, 7.32 acres; 15855 Wooden Drive, Channelview, Texas, 8.94 acres; and 716 one hundred and tenth St., Arlington, Texas, 4.31 acres. Two are within the Savannah port space of Backyard Metropolis, Ga., together with 6031 Commerce Courtroom, 5.91 acres, and 6053 Commerce Courtroom, 4.17 acres.
The remaining properties are:
- 3233 W. 167th St., Hazel Crest, In poor health.; 19.5 acres (Chicago market)
- 2223 Hollywood Street, Joliet, In poor health.; 8.75 acres (Chicago market)
- 2023 Tanker Drive, Sulphur, La.; 7.07 acres (Lake Charles market)
- 1198 Radcliff Street, Creola, Ala.; 9.97 acres (Cell market)
- 206 Telegraph Street, Prichard, Ala.; 9.36 acres (Cell market)
- 4963 Provident Drive, West Chester, Ohio; 6.46 acres (Cincinnati market)
- 3020 Kathleen Street, Lakeland.; 7.68 acres
- 1897 Harbor Ave., Memphis; 3.55 acres
- 2459 Channel Ave., Memphis; 35 acres
