CBRE Arranges $142M Loan for 4 MSF Industrial Portfolio in Georgia, Nevada, Texas
- Apr 22, 2014
KTR Industrial Fund III, an investment vehicle of KTR Capital Partners, has just reeled in $142 million of financing for a 4.3 million-square-foot portfolio in Georgia, Nevada and Texas, courtesy of a helping hand from CBRE Capital Markets’ Debt & Structured Finance group.
Prudential Mortgage Capital Corp. provided the financing, which came in the form of a loan with a fixed rate on $92.3 million and a floating rate on the remaining $49.7 million, as well as blended pricing with a five-year term and full-term interest only.
The 16-property portfolio, which includes the Heritage Business Park in Grapevine, Texas, certainly caught the attention of the lending community. The group consists of high-quality warehouse and distribution facilities, and is presently 87 percent leased.
“Given the strong liquidity in the lending market and the high demand for quality industrial assets of scale, there was healthy lender competition, but the solid underwriting supports the transaction well,” Val Achtemeier, executive vice president of Capital Markets with CBRE Inc., told Commercial Property Executive.
As Achtemeier goes on to describe in a prepared statement, the transaction was highly beneficial to both the borrower and the lender. Fund III walked away with a loan featuring flexibility and a desirable blended interest rate and, she added, “Prudential was able to expand its industrial exposure through a large loan with scale, excellent sponsorship, diversification and solid economic metrics.”