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News release

KANSAS CITY, KA

Office, Industrial and Flex: Diverse Portfolio Attracts Institutional Capital

JLL secures $82M bridge financing for 40 properties across Kansas City


KANSAS CITY, Kan., Oct. 7, 2014 – Pairing economic growth in a rising secondary city with value-add asset opportunities delivers significant lender interest and competition that benefits real estate owners. 

JLL’s Capital Markets experts today announced the firm has secured $82 million in bridge financing for The Lenexa Portfolio, located in Lenexa, Kansas, near Kansas City. The portfolio is a joint venture between Hines and Oaktree Capital Management, featuring 40 office and industrial properties totalling nearly 1.7 million-square-feet. Starwood Property Trust provided the 5-year loan.

International Director Tom Melody and Executive Vice Presidents Keith Largay and Jimmy Board led the JLL team on the transaction.
“Lenders were interested in the strong business plan, low basis in the assets, and diversity of property types in this portfolio, which will attract a broad tenant base,” said Melody. “Backed by strong, institutional sponsorship, new ownership expects a significant uptick in cash flow among the properties.”

“Transitional lenders are increasingly focused on the many often overlooked secondary markets due to strong economic growth and less competition than primary markets,” added Largay.  “With increasing competition in the gateway markets, we expect additional capital from both lenders and investors to be attracted to markets such as Kansas City.”

“Starwood Property Trust did a tremendous job understanding a complex portfolio and structuring the loan with the appropriate flexibility required to meet the business needs of the Borrower,” added Board.

The Lenexa Portfolio features approximately 1.7 million-square-feet with office and industrial properties ranging from Class A, LEED-certified office buildings to modern bulk distribution buildings. The Portfolio is centrally located within the Kansas City MSA, with nearby highway access providing direct access to downtown Kansas City and nearby suburban business and residential neighborhoods such as Overland Park and Olathe.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether a sale, financing, repositioning, advisory or recapitalization execution. In 2013 alone, JLL Capital Markets completed $99 billion in investment sale and debt and equity transactions globally. The firm’s Capital Markets team comprises more than 1,300 specialists, operating all over the globe.

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About JLL
JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual fee revenue of $4.0 billion and gross revenue of $4.5 billion, JLL has more than 200 corporate offices, operates in 75 countries and has a global workforce of approximately 53,000.  On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3.0 billion square feet, or 280.0 million square meters, and completed $99.0 billion in sales, acquisitions and finance transactions in 2013. Its investment management business, LaSalle Investment Management, has $50.0 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com.