JLL Arranges $869M Refi for Industrial Portfolio

JLL Capital Markets recently arranged acquisition financing for The Triad Industrial Portfolio, which spreads across nearly 126 acres. Image courtesy of JLL Capital Markets

An undisclosed borrower has secured $869 million in financing for an 11.4 million-square-foot industrial portfolio. Northwestern Mutual provided two loans totaling $259 and $195 million, while PGIM Real Estate supplied a $415 million note. JLL Capital Markets brokered the transactions working on behalf of the borrower and securing the fixed-rate loans.

The Class A bulk industrial portfolio comprises 25 properties spread across 13 major industrial markets. Fully leased by 42 diverse tenants, the portfolio has an average clear height of 35 feet and an average completion date of 2020.

Senior Managing Director John Rose, Associate Ryan Pollack and Analyst Luke Rogers led the JLL team which represented the borrower. The brokers worked alongside Northwestern’s Kevin Westra and Bob Henning, as well as PGIM’s Paul Geyer.

Recently, another JLL Capital Markets team arranged acquisition financing on behalf of Blue Ridge Industrial. The company purchased a 28-property light industrial portfolio totaling 1.4 million square feet in North Carolina’s Triad region, for $105 million.

The industrial sector surpassed expectations

The industrial market surpassed initial expectations in the first half of 2023, continuing to thrive despite numerous challenges. According to CommercialEdge data, approximately 262.3 million square feet of industrial space was completed in the first half of the year on a national level. The same source shows that deliveries were up 28.6 percent, compared to the first half of 2022.

The Dallas-Fort Worth market ranked first for industrial deliveries in the first six months of 2023, based on the total square footage added to the inventory. The metro’s construction activity remains one of the most active in the country, adding around 29.3 million square feet of space, or 11.2 percent of total stock, between January and June 2023.