Industrial Outdoor Ventures (IOV) has entered into a $65 million secured revolving credit agreement with a syndicate of banks led by CIBC. The credit facility allows IOV to expand its existing holdings to $100 million plus in assets, which the company expects to achieve over the next six months.
IOV specializes in industrial service facilities (ISF), mission critical facilities that are used to store, maintain and dispatch equipment and/or bulk material. They are primarily used by the transportation, construction, construction material and utility industries. IOV‘s five-year plan is to amass more than $500 million in ISF properties in major markets throughout the U.S.
“This is a milestone for our organization. Not only does the agreement validate the industrial service facility product type, but it also strengthens our platform by providing the leverage to continue our company’s evolution,” said chief financial officer Joe Voet.
IOV launched in January 2017 as the first national real estate investor focused exclusively on outdoor storage facilities. It targets an underserved market, aggregating the product type into a national, investment-grade portfolio. Growth has been beyond expectations. Most recently, IOV acquired two properties in Denver and signed RE Logistics to a full facility lease for a freight terminal in Atlanta.
“We have received tremendous support from the brokerage and user communities,” CEO Tom Barbera said. “As we continue to acquire within this niche product type, more users are realizing the unique value proposition IOV offers.”
The firm currently has two facilities in Illinois, both in the I-80 Corridor. The first, located at 23264 Youngs Road in Channahon features 18.9 acres and an 8,600-square-foot office/shop. Direct Trucking signed a long-term lease there last month. The 4.33-acre site at 2131 Maxim Drive in Rockdale is currently fully leased to NPL Construction.