MDH Partners Lands $84M Bridge Loan for Major Acquisition

The company is using the financing to buy a portfolio of 16 industrial properties across five states.
Image courtesy of Truist Financial Corp.

MDH Partners has received $84.3 million in financing for the purchase of a 16-property industrial portfolio. SunTrust Commercial Real Estate, now Truist Financial Corp., arranged the acquisition bridge loan for MDH.

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The entire collection of properties totals more than 1.8 million square feet and includes properties in Dallas, Atlanta, Kansas City, Mo., Memphis, Tenn., and Louisville, Ky. The portfolio is made up of seven warehouses, three truck terminals and six trailer yards in Kansas City that contain 1,855 trailer spaces on 46.1 acres.

Jeff Small, MDH’s CEO, said in prepared remarks that the company’s goal when buying older industrial buildings is to reinvest in them to create value for MDH and the surrounding community. MDH’s acquisition strategy revolves around industrial value-add properties and development opportunities across the Southeast. The company previously purchased a nine-building industrial portfolio located in Charlotte and Raleigh-Durham, N.C., and Greenville-Spartanburg, S.C.

Mark Hancock, senior vice president at SunTrust, was the lead on the transaction. In December, SunTrust merged with BB&T Corp. to form Truist Financial Corp. and purchased a 970,000-square-foot office building in Charlotte, N.C., for its new headquarters.

Industrial sector outlook

In a recent Cushman & Wakefield report on the industrial sector, the booming market is expected to lead all other commercial real estate types for 2020 to 2021. According to the report, the industrial sector in 2020 to 2021 is forecasted to see 460 million square feet of absorption. Supply levels are expected to hit 573.4 million square feet, while rents will increase 6.8 percent. MDH’s newly acquired portfolio also includes properties in two cities that the report billed as the top five markets, Dallas/Fort Worth and Atlanta.