CBRE Snags $250M Loan for Prime Industrial Portfolio

By Keith Loria, Contributing Editor

Michael Riccio, CBRE

Indianapolis—Becknell Industrial Operating Partnership LP, a joint venture between a fund managed by UBS Asset Management, Global Real Estate-US and Becknell Industrial, has received a $250 million loan for its Becknell Industrial Portfolio, which contains 140 Class A distribution properties located in core markets across the U.S.

The portfolio includes more than 14 million square feet of space, and the properties are situated around transportation hubs in key distribution corridors, contributing to its appeal as an investment opportunity.

CBRE Capital Markets’ Debt & Structured Finance team arranged the financing.

“This portfolio is diverse both geographically and by tenant. It’s 97 percent leased, and has strong sponsorship,” Michael Riccio, CBRE senior managing director, capital markets, told Commercial Property Executive. “Industrial properties are a favored property type due to strong supply and demand characteristics. It’s difficult to get large portfolios.”

According to JLL’s latest national industrial report, quality space options remain limited in many of the nation’s top markets with new construction leasing in facilities built in or after 2014 comprising 78 percent of overall net absorption activity in the sector during the quarter.

The report said that even though the U.S. is in a “slower growth” economy, leasing activity is anticipated to be steady in 2016, and more spec development will likely cause U.S. vacancy to hover in the low-6’s through year-end. Furthermore, warehouse asking rents will increase for the sixth-straight year, with 4.5 percent in annual growth expected by year-end 2016.

According to Riccio, the properties included in the portfolio are all located in strong distribution area and the diverse locations spreads any geographical risks.

Susan Larkin and Anna Pfau of CBRE’s Hartford, Conn., office, joined Riccio in securing the competitively priced, floating-rate loan.