Park Madison Partners served as the exclusive placement agent
PHILADELPHIA and NEW YORK, May 02, 2024 (GLOBE NEWSWIRE) — Philadelphia-based Alterra Property Group, LLC (“Alterra”) and New York-based Park Madison Partners today announced the final close of Alterra IOS Venture III, LP (“Venture III”). Venture III was oversubscribed with $925MM of total commitments, exceeding the original fundraising goal of $750MM and surpassing the hard cap of $850MM. Limited partners in the fund included a diverse mix of public and private pensions, endowments and foundations, sovereign wealth funds, asset managers, family offices, and high net worth individuals.
Venture III is a continuation of Alterra’s Industrial Outside Storage (“IOS”) investment strategy launched in 2016. Alterra believes IOS benefits from several positive real estate fundamentals, including rising tenant demand, constraints on new supply, and low recurring capex requirements for supply chain and infrastructure real estate. Alterra expects Venture III’s acquisitions to focus on infill properties in major markets across the U.S. and Canada.
“Alterra’s national scale, proven track record, and vertically integrated team contributed to a strong capital raise in a challenging market for real estate. The IOS sector is a $200BN market that is highly fragmented and opaque due to the lack of institutional ownership and available market data. As a first mover in the space, Alterra has acquired over 250 properties across 30+ states, providing Alterra unique insights into the market. Venture III is the largest IOS dedicated pool of discretionary capital raised to date and will help deepen our competitive advantage as we look to further institutionalize the IOS sector,” said Matthew Pfeiffer, Managing Partner/CIO of Alterra.
Venture III’s final close coincides with the successful deployment of its $524MM predecessor vehicle, Alterra IOS Venture II, LP. Venture II was also in excess of its original target fund size and hitting its hard cap. Today, Alterra is one of the largest institutional owners of IOS in the U.S. with approximately $3.0 billion of AUM.
“The institutional investor support for Alterra and Venture III has been an outlier to the larger market,” said Park Madison Partners’ Rob Kohn. “The last 12 months has been perhaps the most challenging fundraising environment since the Global Financial Crisis, so raising $925MM for Venture III is a real testament to both the IOS market opportunity and Alterra’s leadership in that space. The speed to final close was also impressive. The entire investor allocation was more or less spoken for within 8 months of launch, versus the current industry average of 24 months.”
“We believe IOS represents a generational investment opportunity to aggregate and institutionalize an attractive niche industrial property type. We made the strategic decision years ago to be an early mover in the IOS space, and we are deeply appreciative of the continued support we’ve received from the investor community and their advisors,” said Leo Addimando, Founder and Managing Partner/CEO of Alterra.
About Alterra Property Group
Alterra Property Group, LLC (“Alterra”) is an institutional real estate investment, development and management company focusing on industrial outdoor storage and multi-family/mixed-use developments. Since 2005, Alterra has executed hundreds of real estate transactions across 30+ states, including the acquisition of over 250 industrial outdoor storage properties over the past 7+ years.
For more information, please visit AlterraProperty.com
About Park Madison Partners
Park Madison Partners, LLC is a New York-based capital markets and advisory firm for global real estate alternative investments. Since its formation in 2006, Park Madison has advised on over $27 billion in private capital placements for a wide range of real estate vehicles including closed-end funds, open-end funds, separate accounts, programmatic joint ventures, and recapitalizations. The team comprises professionals from diverse backgrounds on the buy-side and sell-side and leverages this experience to offer Park Madison’s clients highly customized solutions across global real estate capital markets.
For more information, please visit ParkMadisonPartners.com
Important Disclosures
Alterra IOS Manager is an investment adviser registered with the Securities and Exchange Commission. Registration as an investment adviser does not imply a certain level of skill or training. This information is neither an offer to sell nor a solicitation of an offer to purchase any securities. Such an offer will only be made by means of a confidential private placement memorandum and related subscription documents. Furthermore, Alterra IOS Venture II, LP and Alterra IOS Venture III, LP are closed to new investors.
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