NY Life Real Estate Backs Midwest Industrial Portfolio

The company came through with a $120 million loan to finance a 15-property portfolio for Industrial Property Trust.

By Barbra Murray, Contributing Editor

9449 Glades Drive, Hamilton, Ohio
9449 Glades Drive, Hamilton, Ohio

New York—There’s a 3.3 million-square-foot industrial portfolio in the Midwest that has just been financed courtesy of New York Life Real Estate Investors. The real estate debt and equity investment company came through with a $120 million loan on behalf of affiliates of Industrial Property Trust Inc. 

The financing for the 15-building group of industrial facilities came in the form of an eight-year loan with a fixed rate. NYL Real Estate Investors doesn’t hand out loans to just any borrower who comes a-callin’. The company looked favorably upon the industrial portfolio opportunity, due in no small part to a history with the sponsor.

A longstanding association, however, was just one of the factors that went into NYL Real Estate Investors’ decision. “While we highly value our lending relationships, first and foremost each loan must stand on its merits,” John Howard, a senior director with the company, told Commercial Property Executive. The investment firm was taken by the high quality of the assets, in addition to their location in markets with solid fundamentals. The collection spans metropolitan Chicago, Memphis, as well as Cincinnati, where IPT shelled out $35.1 million last year on the acquisition of a four-building, 661,000-square-foot portfolio that includes the building at 9449 Glades Drive in Hamilton.

NYL Real Estate Investors isn’t timid about parting with the big bucks—that’s if a borrower ticks all the right boxes. The company’s substantial list of originations in the last year includes a $137.5 million mortgage loan for Cornerstone Real Estate Advisers’ 517,000-square-foot office tower at 100 Wall St. in Manhattan, and a $264.5 floating rate loan to a Brookfield Asset Management-managed fund for a five-property multifamily portfolio. NYL Real Estate Investors also joined Northwestern Mutual and New York State Teachers’ Retirement System in providing co-owners Prudential Real Estate Investors, SJP Properties and Norges Bank Investment Management with $507 million in financing for the 1.1 million-square-foot Eleven Times Square trophy office property in Manhattan.