Clarion Secures $81M in Financing for Metro Atlanta Industrial Portfolio
- Sep 30, 2013
Clarion Partners has just obtained $80.9 million in financing for a 3.1 million-square-foot industrial portfolio in metropolitan Atlanta. Prudential Insurance Company of America came through with the funds, allowing the real estate investment manager to refinance the group of 31 properties.
Clarion relied on commercial real estate services firm Colliers International to arrange the financing, which took the shape of a non-recourse, floating rate loan. Colliers had presented the opportunity to a variety of lending sources, including banks, CBMS and insurance companies. It’s no wonder they took an interest, given that, for one, the portfolio is 91 percent leased. But the respectable occupancy level was not the only magnet.
Certainly it didn’t hurt that Atlanta’s industrial market is on the upswing, do in no small part to the steady improvement in Georgia’s economy. According to a report by Colliers, in the second quarter, the industrial vacancy rate in Atlanta was at its lowest point since the fourth quarter of 2008, and the city “is on track to have its best annual increase of industrial occupancy since before the ‘Great Recession.’”
And then there’s the sponsorship that undoubtedly caught lenders’ attention. Traditionally, they appear to be anything but shy about providing Clarion with financing. Earlier this month, CIBC World Markets supplied $150 million to an account managed by Clarion for the refinancing of the 1.4 million-square-foot Merritt 7 office park in Norwalk, Conn. And in January, Clarion kicked off 2013 with the announcement of $296 million in financing for a 1.6 million-square-foot national office portfolio.