JP Morgan Asset Management and Zenith IOS have formed a second $700m (€640.7m) US industrial outdoor storage (IOS) assets venture, following their initial partnership in February 2024.
The joint venture will target core infill sites with low building density for investments ranging from $5m to $20m nationwide.
Building on Zenith’s existing portfolio in Arizona, California, Florida, Georgia, Oregon, Texas and Washington, the new capital will expand the platform’s footprint across the US.
Craig Theirl, managing director and CIO of real estate Americas for JP Morgan, said: “We’ve observed that IOS has a multifaceted set of demand drivers and the sector will continue to benefit from increased infrastructure spend, elevated residential construction, and population shifts, in addition to the broader tailwinds from growing e-commerce.
“We expect that these factors, when coupled with limited new supply of suitable IOS sites, will drive continued rent growth in the sector going forward.”
Benjamin Atkins, Zenith’s CEO, said: “The national IOS investment landscape is institutionalising at a rapid pace and IOS tenants recognise the advantages of partnering with an experienced owner capable of providing real estate solutions to meet the demands of today’s IOS users.”
An earlier version incorrectly identified Benjamin Atkins as Zenith’s CIO. He is, in fact, the company’s CEO.
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