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Alterra wraps up sophomore IOS fund

Alterra Property Group has closed its second industrial outside storage fund at $524 million, beating its $400 million target.

Alterra Property Group has closed its second industrial outside storage fund at $524 million, beating its $400 million target. Alterra IOS Venture II’s limited partners include public and private pensions, endowment and foundations, asset managers, family offices, and high-net worth individuals. Park Madison Partners was the placement agent.

PRESS RELEASE

PHILADELPHIA/NEW YORK (March 18, 2022) – Philadelphia-based Alterra Property Group, LLC (“Alterra”) and New York-based Park Madison Partners today announced the final close of Alterra IOS Venture II, LP (“Venture II”). Venture II was oversubscribed, closing $524MM of total commitments, exceeding the original fundraising goal of $400MM. Limited partners in the fund included a wide mix of public and private pensions, endowment and foundations, asset managers, family offices, and high net worth individuals.

Venture II is a continuation of Alterra’s Industrial Outside Storage (“IOS”) investment strategy launched in 2016. Alterra focuses on acquiring low density, supply chain and infrastructure real estate in core infill locations. With smaller transactions that average between $5-20MM and are below the radar of most institutional investors, Alterra is able to curate high quality national portfolios of IOS real estate. Today, Alterra is one of the largest institutional owners of IOS properties in the U.S.

“We are very excited at Alterra to have completed the fundraising for Venture II, our first discretionary Fund. In partnership with Park Madison Partners, we launched fundraising in the summer of 2021 and we had significant investor interest in our firm, our strategy, and in this burgeoning sub asset class of Industrial,” said Leo Addimando, Founder and Managing Partner/CEO of Alterra.

“We are grateful for the opportunity to work with Alterra on this capital raise,” said Park Madison Partners’ Rob Kohn. “As institutional investors seek more diversification within their real estate portfolios, Alterra has clearly positioned itself as a leader within the IOS space. The incredible investor support for this fund is a testament to both the market opportunity within IOS and to investors’ confidence in the Alterra team as fiduciaries.”

“The IOS market is a $200BN market that is highly fragmented with limited institutional ownership. Every major city in the country needs IOS real estate to support its infrastructure, logistics, and transportation industries. Alterra has established itself as an early entrant and market leader within the IOS space. Launching our first fully discretionary fund further adds to our competitive advantage on certainty of execution and national scale that are central to our long-term investment strategy,” said Matthew Pfeiffer, Managing Partner/CIO 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 100 industrial outdoor storage properties over the past 5+ years. Alterra has closed over $1.5B of real estate transactions.
For more information, please visit AlterraProperty.com