6.4 MSF Kansas City Industrial Portfolio Lands $244M Refi

A joint venture between an Ares Management Real Estate fund and NorthPoint Development has refinanced a 10-property warehouse and distribution portfolio totaling 6.4 million square feet in Logistics Park Kansas City in Edgerton, Kan. Barings provided the $244 million loan.

Developed between 2014 and 2017, the buildings are located within the 1,700-acre master-planned industrial park and inland port developed jointly by NorthPoint Development and BNSF Railway. The properties offer immediate access to BNSF Railway’s state-of-the-art intermodal rail facility. Located along the railway’s Transcontinental Corridor, LPKC opened in 2013. It has a total building capacity of 17 million square feet.

In 2017, NorthPoint sold a majority stake in the portfolio to Ares Management Real Estate, a global alternative investment manager with nearly $50 billion in assets under management as of March. NorthPoint retained a minority stake as part of the joint venture and also continued to operate and maintain the buildings.

The portfolio is currently 93 percent leased to a variety of premier tenants including Amazon, Stanley Black & Decker, Sam’s Club, Assa Abloy and Smart Warehousing. The buildings feature concrete tilt-panel construction with an average 35-foot clear height and 706 dock doors.

Amazon agreed to lease an 822,104-square-foot building at LPKC in March 2016 for a fulfillment center expected to create about 1,000 jobs. At the time, it was the largest speculative industrial building ever constructed in the Kansas City, Mo., market.

Barings Transactions

Steve Murray, a Barings managing director, said in a prepared statement the refinancing transaction is closely aligned with the asset management firm’s real estate debt strategy that is focused on investing in high-quality assets in dynamic markets and backed by experienced sponsors. The company’s real estate debt platform is now more than $28.4 billion.

Also this month, Barings provided a $102 million five-year construction loan alongside $63.3 million in green financing from Counterpointe Sustainable Real Estate to help redevelop downtown Darien, Conn.’s Corbin District. Phase II will feature 11 new buildings including a mix of apartments along with office and retail space.

Last year, Barings purchased Warner Commerce Center, a newly built speculative 197,000-square-foot industrial property in Tempe, Ariz., from The Opus Group for $42.4 million.