JV Arranges $109M Refi of Multi-State Facilities

By Barbra Murray, Mar 28, 2018

4250 Patriot Drive in Grapevine, Texas

Cushman & Wakefield has come through for Industrial Properties America III LLC, a joint venture of investors advised by JP Morgan Asset Management and IDI Logistics. The commercial real estate services firm recently arranged $108.6 million in refinancing for the borrower’s 2.2 million-square-foot national industrial portfolio.

The financing, secured by Cushman & Wakefield Senior Director Richard Henry, Executive Director Brian Linnihan and Executive Managing Director Mike Ryan, came in the form of a floating rate loan.

Featuring eight fully leased facilities, Industrial Properties’ collection of newly refinanced assets spans locations in Illinois, Ohio, Texas and California. The properties include 11310 Cantu Galleano Ranch Road in Mira Loma, Calif.; 1555 Hunter Road in Hanover Park, Ill.; 8700-8720 LeSaint Drive. in Westchester, Ohio; 4250 Patriot Drive in Grapevine, Texas; and 8425 Airways Blvd. in Southaven, Miss. Two of the assets, 11600 Miramar Parkway and 2501 S.W. 160th Ave., are located in Miramar, Fla. And rounding out the group is 2124 Skyview Drive in Lithia Springs, Ga., a 395,000-square-foot building occupied in its entirety by XPO Logistics.

11310 Cantu Galleano Ranch Road in Mira Loma, Calif.

“Industrial fundamentals remain very strong and almost all lenders and investors are underweighted to industrial. As a result, the portfolio received a significant interest from banks and life companies,” Ryan said in a prepared statement.

It wasn’t just the quality and tenancy of the portfolio that attracted lenders. In prepared remarks, Linnihan said the strength of the sponsorship also “enabled the borrower to drive pricing, maximize prepayment flexibility and eliminate any on-going covenants.”

The allure of industrial

The commercial real estate investment community has placed the sector at the top of its list, and lenders are following suit. “[Both] are seeing the emergence of industrial and warehouse properties as a more attractive asset class. This trend is expected to continue as high-growth consumer companies, led by Amazon, require fulfillment and distribution centers near core markets,” according to a credit report by global professional services firm Ernst & Young.

Cushman & Wakefield’s Equity, Debt & Structured Finance team has arranged its share of financing transactions for the industrial sector over the last several months, with borrowers’ needs running the gamut. One of the firm’s most notable deals was the orchestration of $51.8 million of fixed-rate financing for Heritage Capital Group’s acquisition of the 508,000-square-foot Totowa Commerce Center, a 13-building flex/industrial park in Passaic County, N.J.

Images courtesy of Yardi Matrix