Acting on behalf of Biynah Industrial Partners, JLL Capital Markets has orchestrated a financing deal for the acquisition of a national industrial portfolio spanning 17 leading markets.
Biynah purchased the collection of more than 20 last-mile facilities with the assistance of a $61 million loan. All parties involved in the transaction are remaining mum on many of the details, including the specific square footage of the group of properties, but all signs indicate that Realterm was the seller.
Matthew Schoenfeldt, a managing director with JLL Capital Markets, and Lucas Borges, a director with the firm, represented Biynah in the transaction. The portfolio, which is 93 percent leased, was well received by the lending community.
“We received 10 very attractive quotes from insurance companies, banks—both domestic and foreign—as well as credit funds,” Schoenfeldt told Commercial Property Executive. The financing came in the form of a loan with a floating rate that is synthetically fixed via a bank SWAP.
The portfolio is located in key areas of the Southeast, Mid-Atlantic, New England and Central U.S., and consists of industrial service facilities, a specialized asset class that JLL Capital Markets describes as a rapidly growing, multibillion-dollar industrial sub-sector that has quickly become a favorite among real estate investors as well as lenders.
Basically, ISFs are industrial properties with a substantial outdoor storage component that facilitates a wide range of essential supply chain functions. “Specifically to this portfolio, last-mile, cross-dock truck terminals, and transload properties operate as a supply chain management tool that allows companies to sort and reconsolidate incoming freight and facilitate the rapid and high-volume handling of goods to their final destination,” Borges told CPE.
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Assets in the portfolio include the 131,00-square-foot warehouse and distribution facility at 590 Broadway in Menands N.Y., and 1785 O’Rourke Blvd., a 3-acre facility currently leased to FedEx Freight in Gaylord, Mich. The newly traded collection is leased to a total of 18 businesses.
A buying kind of mood
To date, June has proved a busy month for Biynah. Less than two weeks ago, the company and joint venture partner Alex. Brown Realty made a notable move to grow their portfolio of truck terminals and high flow-through industrial assets with the acquisition of four assets. The partners’ transportation-centric portfolio now totals 11 assets throughout the Midwest.