$48.58M loan secured for MDH Partners’ industrial portfolio acquisition
JLL Capital Markets arranged the financing for the four-property portfolio that includes cold storage space in Dallas and San Antonio
DALLAS, Apr. 8, 2021 – JLL Capital Markets announced today that it has arranged $48.58 million in post-acquisition financing for a fully leased four-property industrial portfolio totaling 505,719 square feet in high-growth markets in Dallas and San Antonio, Texas.
"As a whole, Texas cities are attracting more investors, with Dallas-Fort Worth among the strongest industrial markets in the country right now and San Antonio emerging as one of America's fastest-growing cities," said Arun Singh, Chief Financial Officer at MDH Partners. "Given each facility's location within regions that consistently demonstrate low vacancy rates, strong historical rent growth and substantial net absorption, this portfolio exemplifies our strategy of investing in industrial assets within high-performing submarkets. And, as demand for industrial facilities like these continues to grow, we're pleased to add these properties to our portfolio and look forward to continuing to expand our footprint across the state."
The portfolio includes two net-leased assets in infill submarkets at 3551 Dan Morton Dr. in Dallas and 2001 S. Laredo St. in San Antonio acquired in January via a sale-leaseback with Surlean Foods, a custom food manufacturer with a more than 40-year operating history. The San Antonio property serves as the tenant’s headquarters and both mission-critical facilities house in-demand food production and freezer and cooler space.
Cold storage assets continue to be in high demand, with historical vacancies remaining below 10 percent. This increase is due to a sudden rise in e-commerce adoption and change in consumer consumption patterns in the wake of COVID-19. Because of this, the cold storage space has proven itself to be a stabilizing factor over the last 13 months, which increases long-holding investor interest. Additionally, investors are drawn to the fact that they can get an outside yield when compared to traditional warehousing.
The remainder of the portfolio comprises Shiloh Commerce Center at 600-640 Shiloh Road in Plano. Completed in 2001, the two, Class A buildings are fully leased to three tenants. The property is in the Plano industrial submarket, which is one of the healthiest in the Dallas-Fort Worth metro area with access to skilled labor supply and limited land availability for new development.
The acquisition lead for MDH Partners was Managing Director Georga Rowe. Rowe covers Texas and markets throughout the Western half of the U.S.
The JLL Capital Markets Debt Placement team representing the borrower was led by Senior Managing Director Christopher Drew, Director Maxx Carney and Associate Reid Carleton, along with local San Antonio market expertise provided by Senior Managing Director Jeremy Womack and Dallas market insight from Director Jarrod McCabe.
“The enthusiastic lender response was a result of MDH Partner’s exceptional industry reputation and their ability to identify and acquire high-quality, well-located industrial assets in dominant markets,” Drew said.
“Competition among debt capital providers for industrial financing opportunities has accelerated over the past 12 months, and the execution on this portfolio illustrates how superior sponsorship can even further drive the competitive process,” Carney added.
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 sale advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
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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 $16.6 billion, operations in over 80 countries and a global workforce of more than 91,000 as of December 31, 2020. 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 $4 billion (75 million square feet) of acquisitions, developments, and asset management as an advisor and investor. For more information, visit mdhpartners.com.