Allianz Provides $135M for Denver-Area Industrial Assets
- Jan 31, 2020
Allianz Real Estate has entered into an agreement to provide affiliates of Majestic Realty Co. with financing for nine industrial buildings at Majestic Commercenter, a 1,500-acre master-planned business park just outside Denver in Aurora, Colo. The portfolio encompasses approximately 2 million square feet of gross leasable area.
Majestic Commercenter, which opened in 1996, is located 10 miles from downtown Denver and five miles from Denver International Airport. The park is currently 93 percent occupied and features more than 7.5 million square feet of industrial, warehouse and distribution facilities, serving as home to speculative offerings, corporate campuses and build-to-suit projects.
At full buildout, Majestic Commercenter will encompass 15 million square feet. The financing for the group of nine buildings—seven of which are 100 percent leased—came in the form of nine non-crossed collateralized loans.
Prior to the new financing deal, Allianz had already originated eight loans for Majestic. Including the latest lending transaction, Allianz’s debt exposure to Majestic totals $270 million.
Eye on U.S. Debt
The new Majestic Commercenter financing dovetails with Munich- and Paris-based Allianz’s goal of expanding its presence in the U.S. through investment in core-plus assets. Looking ahead at 2020, the real estate investment manager notes that its investors are particularly keen on the U.S. debt market.
“The U.S. real estate market outlook is positive; it continues to provide clients with long term investment opportunities to secure participation in projects that offer solid and stable returns that will match their liabilities over longer periods of time,” Mike Cale, co-head of U.S. Debt with Allianz Real Estate, told Commercial Property Executive. “In 2019 we deployed over $2 billion in debt financing in the U.S. through 60 new transactions—a record number of closings for the calendar year. We expect this trend to continue in 2020, looking for opportunities not only in 24×7 cities but also looking closer at the 18×7 cities, like Denver, Nashville, Kansas City and Indianapolis, to name a few.” Allianz will endeavor to originate a diversified portfolio of 50 loans over the coming months.