Major Industrial Financing Secured by JLL
JLL's Capital Markets group has successfully arranged a notable refinancing for a broad portfolio of industrial properties.
Recently, JLL's Capital Markets group announced that it has facilitated an impressive $820 million refinancing for a robust national industrial portfolio that encompasses 42 shallow bay industrial properties, amounting to a total of 6.1 million square feet across a diverse range of six significant states.
In this endeavor, JLL represented the borrower, a collaboration between affiliates of CIP Real Estate LLC and Almanac Realty Investors. The financing, a floating-rate, single-asset single-borrower (SASB) arrangement, was primarily led by Wells Fargo, with participation from J.P. Morgan and Goldman Sachs, who each provided portions of the loan.
Portfolio Characteristics and Market Presence
This remarkable portfolio serves key industrial markets including Atlanta, Dallas-Fort Worth, Charlotte, and Tampa, among others. As of the latest update, the properties boast a substantial leasing rate of 91%, accommodating over 950 unique tenants.
The industrial spaces within this portfolio have impressive features, highlighted by average clear heights of 19 feet and an office finish percentage of roughly 33. Properties range widely in size, from about 16,176 to 944,655 square feet, with an average property size of 145,925 square feet. The strategic locations of these properties grant tenants quick access to major transportation networks and population hubs, catering effectively to a broad spectrum of logistics, e-commerce, and distribution's needs—including last-mile delivery operators and small to medium-sized businesses.
“This refinancing signifies a pivotal moment for our partnership with Almanac and exemplifies the strength of our diversified industrial portfolio,” stated Eric Smyth, CEO of CIP Real Estate. “We are grateful for JLL’s expertise in obtaining competitive terms that enhance our ability to pursue growth in the shallow bay industrial sector, where we perceive ample opportunities to address the evolving needs of logistics, e-commerce, and distribution tenants.”
Expert Team Behind the Successful Financing
The JLL Debt Advisory team that orchestrated this significant financing was led by Capital Markets President Kevin MacKenzie, alongside Senior Director Peter Thompson, Director Christopher Pratt, Associates Kyle White and Anthony Scaglione, as well as Analyst Nick Englhard, with valuable support from investment sales teams active in local markets.
“Robust sponsorship and strategic execution contributed to outstanding results for this considerable financing,” MacKenzie commented. “The successful partnership between CIP and Almanac, coupled with solid operational performance at the asset level and JLL's extensive experience in large loan placements, allowed us to structure favorable terms across this geographically diverse shallow bay portfolio.”
About JLL and Its Impact on Real Estate
JLL's Capital Markets group serves as a comprehensive global provider of capital solutions aimed at real estate investors and occupiers alike. With profound local market insights and a robust global network of investors, the group delivers top-tier solutions for their clients. This includes services in investment sales, debt advisory, equity advisory, or recapitalization, bolstered by a team of over 3,000 Capital Markets professionals operating within nearly 50 countries.
With a legacy spanning more than two centuries, JLL (NYSE: JLL) stands as a premier global commercial real estate and investment management firm, effectively aiding clients in acquiring, building, occupying, managing, and investing across various commercial, industrial, residential, and retail properties. The company cites annual revenues exceeding $23.4 billion, employing more than 112,000 individuals worldwide, all committed to shaping a better future in real estate.
Frequently Asked Questions
What is the total portfolio size being refinanced?
The refinancing arrangement encompasses a total portfolio size of 6.1 million square feet across 42 shallow bay industrial properties.
Who led the refinancing deal?
Wells Fargo led the financing, supported by J.P. Morgan and Goldman Sachs, who also contributed portions of the loan.
What is the leasing status of the properties in this portfolio?
The properties within the portfolio are currently 91% leased, accommodating over 950 unique tenants.
What key features do the industrial properties have?
The properties feature average clear heights of 19 feet and an average size of 145,925 square feet.
What is JLL's role in the commercial real estate market?
JLL is a leading provider of capital solutions and services to real estate investors and occupiers, offering a broad spectrum of capabilities such as investment sales, debt advisory, and equity advisory.
