Alterra IOS Venture III raises $925 million, surpassing $750 million target and increasing hard cap beyond $850 million
02 May 2024 - 10:00PM
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 GroupAlterra 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 PartnersPark 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 DisclosuresAlterra 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.
Media Contacts
Rosalia Scampoli (212) 537-5177, Ext.
7 rscampoli@marketcompr.com