As the industrial outdoor storage (IOS) sector continues to gain prominence, key players are celebrating the next phase of their partnership with a new round of financing. Zenith Industrial Outdoor Storage and J.P. Morgan Asset Management (JPMAM) have secured a $215 million credit facility from KeyBank and Truist, as exclusively reported by Commercial Observer. This facility funds Zenith's second programmatic joint venture with JPMAM and will enable the continued scaling of its expanding IOS portfolio.
KeyBank acted as administrative agent for the secured facility, which features an accordion option allowing the joint venture to increase its borrowing capacity as needed, and led the transaction. Truist served as Joint Lead Arranger. Justin Horowitz, Ben Knopf, and Josh Tropper of Cooper-Horowitz arranged the facility. Ben Atkins, co-founder and CEO of Zenith, commented on the significance of the agreement in a statement.
Atkins stated: "This credit facility marks another significant milestone in our ongoing partnership with J.P. Morgan Asset Management and reflects continued institutional confidence in the IOS sector. The size and flexibility of this financing will allow us to accelerate acquisitions, deepen our presence in key growth markets, and continue to execute our long-term investment strategy. We look forward to building on the success of our first joint venture and further strengthening this second programmatic partnership."
The facility refinances 34 IOS assets totalling 140 acres. The majority of the properties are spread across markets in the Southeast, South Central, and Southwest regions. The portfolio is almost fully leased at 99.6 per cent. This is not the first time the joint venture has worked with KeyBank. In February, the lender already provided Zenith and JPMAM with a $130 million credit facility for a portfolio of 14 IOS properties.
Vinh Thai, Head of Investments at Zenith IOS, and Max Rodenborn, the company's Vice President, led the transaction alongside Atkins. Jessica Lauerhass from KeyBank led the transaction on behalf of the lenders. Lauerhass remarked: "This transaction represents a natural extension of the successful framework established earlier this year for Zenith's first programmatic venture. Our familiarity with the platform, combined with our confidence in Zenith's management team, the support of J.P. Morgan Asset Management, and the increasing institutionalisation of the IOS sector, positioned us to provide a scalable capital solution designed to support the joint venture's continued growth."
The same Cooper-Horowitz team, consisting of Horowitz, Knopf, and Tropper, also arranged the February credit facility. Justin Horowitz emphasised that KeyBank's ongoing commitment to Zenith and J.P. Morgan Asset Management reflects the "increasing institutional conviction in the IOS sector." He added: "KeyBank was an early adopter in expanding their relationship with the platform, highlighting the growing depth of capital and lender confidence in this asset class. Transactions such as these continue to demonstrate the maturation of IOS and its evolution into a recognised institutional real estate asset class."
