SomeraRoad Lands $525M Refi for Nationwide Industrial Portfolio

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SomeraRoad has closed a $525 million refinancing deal with the Bank of Montreal for a 50-property industrial portfolio. A Newmark team negotiated the loan on behalf of the borrower. The portfolio consists of single-tenant facilities net leased to 35 companies.

Spanning 6.8 million square feet across 27 states, most assets in the portfolio were developed over the past decade and were recently renovated by their long-term tenants. The average weighted lease agreement across the assets is approximately 13 years. 

The recent transaction is indicative of a debt market that is partial to diverse and well-located industrial assets, Newmark Vice Chairman Dustin Stolly said in a prepared statement. Stolly, along with Vice Chairman Jordan Roeschlaub, Senior Managing Directors Chris Kramer and Nick Scribani, and Analyst Jake Neeb, were all part of the Newmark team that negotiated the loan on behalf of SomeraRoad. 

Rapid expansion

Since launching in 2016, SomeraRoad has built a portfolio of more than 23 million square feet of industrial and office spaces nationwide.

The company’s industrial holdings include more than 874,000 square feet across four facilities in the Carolinas and Tennessee, net-leased to ABB Southeast’s Baldor Electric division. The industrial gear producer has been operating at the locations for more than three decades and has invested significantly in improving the facilities across the years, according to SomeraRoad’s website. 

Other notable tenants at SomeraRoad-owned facilities include Unison Industries—an aircraft manufacturing division of General Electric Aviation—which is occupying 184,810 square feet in Jacksonville, Fla., and McFarling Foods, a company leasing a 118,859-square-foot cold storage facility in Indianapolis.