A 7-acre site with industrial outdoor storage and a 27,000-square-foot industrial building in El Monte has received $20 million in refinancing. Century City-based Bandon Capital Advisors arranged the loan with a life insurance company lender on behalf of an undisclosed private investor.

Industrial outdoor storage, which is casually known as IOS among industry professionals, refers to a niche commercial property asset type that has grown in popularity in recent years.

The El Monte transaction highlights this asset type’s growing popularity, particularly in strong industrial markets like Los Angeles, according to Bryan Kenny, co-founder and president at Bandon Capital Advisors.

“Demand for IOS properties is increasing as investors seek assets that are both protected from downside risk and offer the potential for rising value in the current uncertain economic climate,” Kenny said.

The deal also underscores the importance of life insurance companies in today’s tight lending climate, if executed properly, according to Kenny.

“While many traditional lenders maintain rigid underwriting policies and remain wary about commercial real estate transactions, Bandon works with a trusted group of life companies that are still cautiously optimistic and willing to lend for the right deals with the right sponsors,” he said, noting the key is to minimize risk for the lender.

The seven-acre asset, which is leased to an undisclosed Fortune 500 company, is located in the San Gabriel Valley directly across from its key distribution facility. The industrial building offers on-site rooftop parking.