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News release

HOUSTON, TX

Jones Lang LaSalle Arranges $100 Million Secured Credit Facility for Mixed-Use Portfolio

Principal Life Insurance Company provides permanent financing for seven property mixed-use portfolio


HOUSTON, April 12, 2012 — Jones Lang LaSalle’s Capital Markets experts today announced the firm has arranged a $100 million secured credit facility for a 2.1 million square-foot, seven property portfolio owned by a pension fund advised by Clarion Partners, LLC.  Principal Life Insurance Company provided the initial $50 million in permanent financing, as well as a future funding component of $50 million for the financing of additional assets.

Jones Lang LaSalle’s Executive Managing Director and Co-Head of the Real Estate Investment Banking practice Mike Melody, Senior Vice President Jimmy Board and Vice President John Ream led the team on this transaction.

“Everyone involved—from the borrower to the lender--exhibited a great deal of collaboration and creativity in bringing this financing to a close.  The initial fixed-rate financing is collateralized by seven properties, with the ability to expand the loan up to $100 million near term with additional assets,” said Melody. “This deal allowed flexibility in terms of moving existing assets out of the loan, with the ability to bring new assets into the financing facility with no prepayment penalties.” 

The mixed-use portfolio is comprised of four properties including:
  • An industrial property located in Edwardsville, IL.
  • An industrial property located in Seacaucus, NJ. 
  • An office property located in Scottsdale, AZ.
  • An industrial property located in Fullerton, CA.
  • An office property in Boca Raton, FL.
  • An office property in Plantation, FL.
  • An office property in Sunnyvale, CA.
“The strong net operating income (NOI), robust base of high-quality tenants, broad asset diversification and low leverage request worked in the borrowers favor,” said Ream. “We were able to secure excellent loan terms for them from Principal Life Insurance Company that will further position Clarion Partners as a leading real estate investment manager and strengthen the pension fund’s portfolio of properties across the United States.”

Jones Lang LaSalle Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. Our in-depth local market and global investor knowledge delivers the best-in-class solutions for our clients — whether a sale, financing, repositioning, advisory or recapitalization execution. In 2010 alone, Jones Lang LaSalle Capital Markets completed $43 billion in investment sale and debt and equity transactions globally. The firm’s dealmakers completed $33 billion in global investment sales and buy-side transactions, equating to nearly $140 million of investment trades completed every working day around the globe. In the United States, Jones Lang LaSalle grew its office broker volumes by 257 percent in 2010 and is quickly gaining market share across all property types. The firm’s Capital Markets team comprises approximately 800 specialists, operating in 185 major markets worldwide.

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About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2011 global revenue of $3.6 billion, Jones Lang LaSalle serves clients in 70 countries from more than 1,000 locations worldwide, including 200 corporate offices.  The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 2.1 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with $47.7 billion of assets under management. For further information, please visit our website, www.joneslanglasalle.com.
 
About Clarion Partners LLC
Clarion Partners has been a leading U.S. real estate investment manager for 30 years. Headquartered in New York, the firm has offices in major markets throughout the U.S. as well as a presence in Mexico and Brazil.  With more than $24 billion in total assets under management, for over 200 institutional investors both domestic and international, Clarion Partners offers a broad range of real estate strategies across the risk/return spectrum.
More information about the firm is available at www.clarionpartners.com.