Catalyst Investment Partners has secured $281m (€243m) in separate financing packages from Blackstone Real Estate Debt Strategies (BREDS) and institutional investors advised by JP Morgan Asset Management to back its second US industrial outdoor storage (IOS) fund.
For JP Morgan, the commitment to Catalyst IOS Fund II marks its debut loan secured against a standalone IOS portfolio.
Catalyst Investment said the financings are backed by a portfolio of 77 properties across 12 IOS markets, including Northern New Jersey, Miami and Washington DC.
Dan Haroun, co-founder and partner at Catalyst Investment, said: “This significant milestone demonstrates the continued institutionalisation of the IOS space as market leading lenders find value in the sector.
“We are grateful for the support and partnership of the JP Morgan Asset Management and Blackstone teams. This financing reflects the quality of the portfolio and Catalyst’s extensive experience and focus on its sector-leading IOS investment management platform.”
Max Heiden, co-founder and partner at Catalyst Investment, said: “Our early entry into the IOS sector, deep market knowledge and proprietary data has enabled us to identify a deep opportunity set of small, flexible, low-coverage IOS properties that are situated in dense urban areas where the supply of IOS is fixed or declining, creating irreplaceable assets for occupiers and investors.
“This financing is further confirmation of the increasing demand among institutional capital for ‘sharpshooter’ specialists with the ability to execute in the IOS sector and deliver compelling risk-adjusted returns at scale.”
Tony LaBarbera, co-head of Americas private investments for BREDS, said: “We are excited to partner with Catalyst, a strong operator with a proven track record in the IOS sector. IOS benefits from structurally limited new supply and robust demand drivers, and we continue to be an active lender in the sector.”
The transaction follows a similar deployment by BREDS just days ago, when the lender provided a $244m loan to finance a 37-property US IOS portfolio owned by Alterra IOS.
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