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Zenith IOS, JPMAM secure $215M credit facility for outdoor storage JV
The senior secured facility includes an accordion feature and will refinance 34 assets totaling 140 acres, with the portfolio reported at 99.6% leased.
Zenith Industrial Outdoor Storage and J.P. Morgan Asset Management have secured a $215 million senior secured credit facility from KeyBank and Truist, Commercial Observer reports. The financing supports Zenith’s second programmatic joint venture with JPMAM and is intended to help scale the company’s expanding IOS portfolio.
KeyBank served as administrative agent and transaction lead on the facility, which includes an accordion feature that can increase borrowing capacity as needed, while Truist acted as joint lead arranger. Cooper-Horowitz arranged the financing.
The credit facility finances a refinance of 34 IOS assets spanning 140 acres, according to the report. The properties are concentrated across Southeast, South Central, and Southwest markets, and the portfolio is described as almost fully leased at 99.6%.
Commercial Observer also notes this is not the first time the JV has used KeyBank, with KeyBank previously providing a $130 million credit facility in February for a portfolio of 14 IOS properties. Ben Atkins of Zenith said the new credit facility is a milestone reflecting institutional belief in the IOS sector and will enable Zenith to accelerate acquisitions and deepen its presence in key growth markets.