Trio of Companies Invest in IOS Properties in Key Markets
Tempus Real Estate Partners as well as a JV with Bay Street Capital and Drake Real Estate Partners add assets in this hot sector.
Industrial outdoor storage (IOS) properties continued to draw attention last week with Tempus Realty Partners announcing its purchase of a portfolio totaling 15 properties across eight states for $39.2 million.
Meanwhile, Bay Street Capital last week announced a joint venture with Drake Real Estate Partners to focus on value-add industrial opportunities. In May, those two closed on a pair of IOS properties in the greater-Nashville area.
This once overlooked asset type is seeing soaring user demand while supply continues to diminish as industrial-entitled land is often developed as warehouse space and municipalities are wary of approving development of new IOS sites.
“IOS continues to experience high-demand, record rents, and low vacancy rates,” David Cotterman, co-founder & CIO, Drake Real Estate Partners, said in prepared remarks.
For Arkansas-based Tempus Realty Partners, the 458,297-square-foot portfolio includes 15 facilities located in Alabama, Michigan, Arizona, Georgia, Nevada, Ohio, South Carolina and Texas. Each facility in the transaction is fully occupied by W.W. Williams, an industrial distribution repair and service company.
W.W. Williams is a diversified industrial distribution repair and service company. It will remain a long-term tenant across each of the 15 facilities purchased by Tempus.