Dealmaker: HFF Arranges $315M for Industrial Assets

Holliday Fenoglio Fowler, Houston, arranged $135 million in financing for two new Baltimore-area build-to-suit industrial buildings fully leased to Under Armour and

The two properties total 2.2 million square feet within the Tradepoint Atlantic multimodal industrial project in Sparrows Point, Md.

An HFF debt placement team including Managing Director Cary Abod, Director Rob Carey and Associate Kevin Byrd represented the borrower. The team placed two separate non-recourse loans with Allianz Real Estate, New York, including a $71.8 million, 18-year, fixed-rate loan for the Under Armour facility and a $63.2 million, 17-year, fixed-rate loan for the Amazon facility.

The Tradepoint Atlantic site covers 3,250 acres on the Sparrows Point peninsula along the Patapsco River five miles southeast of Baltimore’s central business district. It contains the largest privately owned rail interchange yard on the East Coast with connections to two Class I railroads, CSX Transportation and Norfolk Southern Railway. Tradepoint Atlantic also owns and operates a marine terminal within the Port of Baltimore and offers significant deep-water frontage with deep-water berths.

The 1.35-million-square foot building occupied by Under Armour was completed in 2018 and has future expansion potential. The building occupied by also delivered last year and totals 857,500 square feet.

HFF also arranged a $180 million credit facility for a joint venture between Bixby Land Co. and an institutional partner. The initial closing of $48.8 million financed a four-building industrial portfolio in San Bernardino and Sacramento, Calif. and Phoenix, Ariz. The California properties include the 104,500-square-foot Class A property at 19949 Kendall Drive in San Bernardino and the 387,420-square-foot building at 3510 Carlin Drive in West Sacramento. The Phoenix properties include 155,100-square-foot Canal Crossing Logistics Center and 335,500-square-foot Riverside@ 51st Avenue.

An HFF team led by Executive Managing Director Kevin MacKenzie and Senior Director Brian Torp represented the partnership. A life insurance company provided the seven-year, full-term interest-only facility that allows the partnership to add assets for up to 24 months and the flexibility to fix or float the interest rate. The loan also included flexible prepayment, substitution and release provisions.