Acquisition financing supports sale of 9.7 million-square-foot Sunbelt Logistics Portfolio
Following the sale of the Sunbelt Logistics Portfolio in June 2022, MDH Partners and a global institutional investor have secured five-year floating-rate acquisition financing of $650 million from Truist Bank. MDH Partners closed the $1.26 billion sale of the portfolio in June 2022. MDH continues to have an ownership stake in the portfolio and operates the properties. Eastdil Secured arranged the $650 million loan and served as the exclusive advisor for the deal.
“The closing of the Sunbelt Logistics Portfolio sale was a milestone moment for MDH Partners, and the financing received from Truist Bank is a testament to the strength of this portfolio,” said Arun Singh, CFO of MDH Partners. “As the real estate sector faces headwinds from rising inflation and economic volatility, we are grateful for Truist’s continued confidence in us.”
Approximately 47% of the Sunbelt Logistics Portfolio sites are located in four of the top 10 metropolitan statistical areas in the United States, including Dallas, Miami, Atlanta and Phoenix. The portfolio includes 11 properties in Georgia; 10 properties in Florida; eight properties in Texas; seven properties in Arizona and Missouri; four properties in Tennessee and North Carolina; two properties in South Carolina and Virginia and one property in Kentucky. The Sunbelt Logistics Portfolio is 97% occupied by more than 100 regional, national and international tenants with an average remaining lease term of 5.7 years.
“The Sunbelt Logistics Portfolio financing is our fourth partnership with MDH in the last two years,” said Mark Hancock, senior vice president at Truist Financial Commercial Real Estate and lead on the transaction. “In this rapidly evolving marketplace, MDH is a trusted expert and we look forward to continuing our long-standing relationship.”
“With continued robust employment and population growth, the Sunbelt region continues to experience significant interest from investors and lenders,” said Mark Williams, Managing Director at Eastdil Secured.
In October 2021, MDH Partners secured $69.3 million first-mortgage financing from Truist Bank for the delayed acquisition financing of a cross-collateralized and cross-defaulted portfolio encompassing 1,052,721 square feet of industrial assets across three markets.
In April 2022, JLL Capital Markets facilitated the $85 million loan between Truist Bank and MDH Partners for a fully leased, 12-building industrial portfolio totaling 814,888 square feet within last-mile locations in California, Georgia, Maryland, and Minnesota.
MDH Partners has remained very active this year, acquiring nearly five million square feet of industrial assets throughout the U.S. since last January. The firm recently expanded its portfolio into new markets including California, Minnesota, Maryland, Indiana, Illinois and Pennsylvania. The firm currently owns over 85 assets across 20 states.
About MDH Partners
MDH Partners is an Atlanta-based real estate investment company managing its discretionary funds targeting industrial real estate across the United States on behalf of its institutional investors. Founded in 2005 as the successor to a fifty-year-old local real estate development company, MDH Partners has led and/or participated in over $6 billion (80 million square feet) of acquisitions, developments, and asset management as an advisor and investor. For more information, visit www.mdhpartners.com.