$85M loan secured for acquisition of 12-property industrial portfolio
JLL Capital Markets arranged the loan for MDH Partners’s portfolio acquisition in California, Georgia, Maryland and Minnesota
MIAMI, May 2, 2022 – JLL Capital Markets announced today that it has arranged $85 million in acquisition financing for a fully leased, 12-building industrial portfolio totaling 814,888 square feet within last-mile locations in California, Georgia, Maryland and Minnesota.
JLL worked exclusively on behalf of the borrower, MDH Partners, to place the five-year, floating-rate, interest-only, non-recourse loan with Truist.
“MDH Partners is committed to its superior acquisition strategy in key growth markets across the country,” said Arun Singh, CFO of MDH Partners. “The closing of this loan strengthens our credit profile by providing access to capital, granting us enhanced flexibility in the dynamic industrial market. We look forward to building our relationship with Truist as we deploy capital to grow our diverse portfolio.”
The portfolio includes five buildings in the Southern California community of Riverside at 22380/40/20 Van Buren Blvd. and 925/975 Marlborough Ave. and four buildings in the Baltimore MSA at 10720 Gilroy Rd., 10946 Golden West Dr. in Hunt Valley, and 1305 Governor Court Buildings A/B in Abingdon. Rounding out the portfolio are two Minnesota buildings at 740-760 Kasota Circle S.E. in Minneapolis and 20000 S. Diamond Lake Rd. in Rogers and one building outside of Atlanta in Kennesaw at 1875 Greers Chapel Rd.
The portfolio buildings were constructed between 1977 and 2019 and, due to their optimal logistics locations with direct access to transportation and infrastructure, fit well with MDH's strategy of acquiring multi-tenant, last-mile facilities in key growth markets and logistics hubs. They are fully leased to 20 tenants with an average weighted leasing tenure of 10.5 years, and no tenant comprises more than 22% of the total portfolio's base rent.
Mark Hancock, senior vice president at Truist Commercial Real Estate, was the lead on the transaction for Truist.
“We are pleased to work with the MDH team and finance our third industrial portfolio for them,” said Hancock. “The MDH team are all professional, talented and experienced, and we are pleased to have them as one of our many long-term industrial clients.”
In its recent report on The Race for Industrial Space, JLL Research details how, over the last five years, a competitive leasing environment has accelerated U.S. industrial rent growth by 37%. The imbalance of supply and demand will continue through 2023 and further exacerbate the race for space between not only occupiers but also investors.
The JLL Capital Markets Debt Placement team representing the borrower was led by Senior Managing Director Chris Drew, Senior Director Maxx Carney and Associate Jimmy Calvo, along with Senior Directors Robert Carey and Brock Yaffe and Director Eric Boucher.
“MDH’s ability to continue to deploy equity capital in such a competitive market reflects on the firms’ reputation as a trusted buyer in a rapidly evolving and competitive marketplace,” Drew added.
“The competitive financing process for this portfolio further signifies that despite the recent market disruption, efficiently priced debt capital is readily available for high-quality borrowers and high-quality real estate,” Carney said.
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 investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
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Jones Lang LaSalle Americas, Inc. ("JLL") is a real estate broker licensed with the California Department of Real Estate, license #01223413.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $19.4 billion, operations in over 80 countries and a global workforce of more than 98,000 as of December 31, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About MDH Partners
MDH Partners is an Atlanta-based real estate investment company managing its discretionary funds targeting industrial real estate across the United States on behalf of its institutional investors. Founded in 2005 as the successor to a fifty-year-old local real estate development company, MDH Partners has led and/or participated in over $6 billion (80 million square feet) of acquisitions, developments and asset management as an advisor and investor. For more information, visit mdhpartners.com.