Zenith Industrial Outdoor Storage has closed a new senior secured credit facility that will support the expansion of its industrial outdoor storage portfolio in partnership with institutional investors advised by J.P. Morgan Asset Management. The $215 million facility includes an accordion feature that can increase total commitments to as much as $500 million, providing additional capacity as the joint venture grows its holdings.
The financing is being provided with KeyBank serving as administrative agent and joint lead arranger, and Truist acting as joint lead arranger. The facility backs the second programmatic joint venture between Zenith and J.P. Morgan Asset Management, giving the partnership a dedicated capital structure aimed at scaling its strategy in the industrial outdoor storage segment.
The initial borrowing base for the credit facility is comprised of 34 industrial outdoor storage properties. Together, these assets represent approximately 140 usable acres and are reported to be 99.6% leased, indicating limited vacancy across the portfolio securing the loan. The properties are geographically diversified across multiple U.S. regions.
Roughly 80% of the assets in the borrowing base are located in high-growth markets across the Southeast, South Central, and Southwest. The balance of the properties are situated in the Mountain, Midwest, and Northeast regions, giving the joint venture a broad national footprint within the industrial outdoor storage niche. This diversification is embedded directly into the collateral pool supporting the facility.
The new credit line follows an earlier senior financing for the same Zenith and J.P. Morgan joint venture. KeyBank previously provided a $130 million senior credit facility to the partnership, which closed earlier in the year. The latest transaction increases the scale of available debt capital and deepens the relationship between the JV and its banking partners.
Ben Atkins, co-founder and CEO of Zenith, described the new facility as another milestone in the firm's partnership with J.P. Morgan Asset Management. He noted that the transaction reflects continued institutional belief in the industrial outdoor storage sector, underscoring how this specialized industrial asset class is attracting repeat capital commitments from large investors and lenders.
With the combination of a senior secured structure, an expandable accordion feature, and an almost fully leased collateral base, the facility positions the Zenith and J.P. Morgan joint venture to continue accumulating and operating industrial outdoor storage properties across multiple high-growth and established regions in the United States.
