Cushman & Wakefield Arranges Bridge Loan for 1M SF Distribution Facility; New Student Housing Development Rising Next to University of Memphis
- Aug 08, 2014
By Liviu Oltean, Associate Editor
Cushman & Wakefield announced that its Equity, Debt & Structured Finance Group has recently arranged a $25.1 million bridge loan on behalf of PDC Memphis Oaks 3 Holdings L.L.C, an entity managed by Panattoni Development Co. The loan will refinance the existing loan on Memphis Oaks 3, a 1,025,000-square-foot, Class A distribution facility.
The financing was arranged by Mike Ryan, Brian Linnihan, Jeff Walker and Larry Johnson of Cushman & Wakefield’s Atlanta office and Kemp Conrad and Patrick Walton of Commercial Real Estate Advisors in Memphis.
The industrial asset is located at 2860 East Holmes Road, 15 miles south of downtown Memphis and five miles from the Memphis International Airport, with easy access to Interstate 55 and 240 and U.S. Highway 78. At the moment, the distribution center is 82 percent leased.
“This is an institutional-quality asset that benefits from the financial strength of sponsor, the rapid tightening of the Memphis industrial market and the strong, in-place cash flow of the property. This loan will provide Panattoni with funds needed to lease the remaining vacant space as well as to re-lease maturing leases,” said Mike Ryan.
In other real estate news, the University of Memphis will be home to a new 395-bed, off-campus student housing tower, according to the Memphis Business Journal. In order to make room for the new campus, developer Memphis Student Housing LLC will demolish duplexes and apartment buildings at the corner of Mynders Avenue and Brister Street. For the project to move forward, the developer will also have to buy five parcels at 3549, 3557, 3561, 3567, 3571 on Mynders and one at 525 Brister.
Image Courtesy of Cushman & Wakefield