Dealmaker: Newmark Arranges $150M for Midwest Industrial Portfolio
(30860 Sierra Dr. Chesterfield Township, Mich. Image courtesy of Burton Katzman)
Newmark, New York, arranged $150 million in acquisition financing for 24 industrial properties across the Midwest.
Newmark Co-Heads of Debt & Structured Finance Jordan Roeschlaub and Dustin Stolly and Senior Managing Director Chris Kramer led the debt placement team.
Protective Life, Old National Bank and One America originated the loans for Burton-Katzman, Bingham Hills, Mich., and DRA Advisors, New York.
The 2.2-million-square-foot portfolio of single and multi-tenant properties has retained occupancy levels above 99% for the past decade, with current in-place tenants averaging more than 10 years in their spaces. With more than 40 tenants on the rent roll, no user occupies more than 15% of the portfolio’s square footage, mitigating rollover risk.
“Investment in industrial real estate by institutional owners remains a top choice asset class for investors, especially those in secondary and tertiary markets that still offer growth potential,” Stolly said.
The portfolio has assets across dense industrial hubs with high barriers to entry, including Auburn Hills, Sterling Heights, Dearborn and Livonia, Mich. Newmark reported the Detroit industrial market vacancy remains near record lows, generating double-digit rent growth year-over-year since 2020.
“The portfolio represented a highly compelling opportunity to acquire a dynamic, well-occupied and cash-flowing light industrial portfolio at an attractive basis,” said Brett Gottlieb, Managing Director for DRA Advisors.