MDH Partners has today announced the closing of $67.4 million in first-mortgage acquisition financing from a national bank. The financing supports the MDH Estrella portfolio, comprising five industrial assets in Arizona, North Carolina, Indiana and Virginia. MDH acquired all five facilities in summer and fall 2022 via off-market transactions. Arun Singh, CFO of MDH Partners, and Michael Loffredo, Capital Markets Associate, sourced the financing directly with the national bank. The initial swapped rate is 5.25% and reduces to 4.95% over time as the portfolio achieves high performance cash flows.
“Despite recent market disruptions, this competitive financing signifies efficiently priced debt capital is available for the right opportunities,” says Singh. “Our acquisition strategy is paying off, and MDH will continue to strategically invest in high-value assets in key markets through the remainder of the year and as we enter 2023.”
The Estrella portfolio consists of Kentwood 303 in Glendale, Arizona; 8717 W Market Street in Greensboro, North Carolina.; Washington Business Park 1 in Noblesville, Indiana; Park 100 Building 71 in Indianapolis, Indiana; and 3804 Cook Boulevard in Chesapeake, Virginia.
The properties are currently 94.79%% occupied with 23 tenants and 5.57 years of weighted average lease term remaining. Kentwood 303 is the largest asset in the 900,110-square-foot portfolio, representing 30.2% of the net rentable area. Both Washington Business Park 1 and Kentwood 303 were built in 2022.
Estrella is the fifth term loan request of MDH’s Fund II in the last twelve months. The fund was recently upsized from $575 million to $750 million with all investors upsizing their investments prorata. In total, the fund has over $2 billion of buying power and is 50% allocated. The upsizing of Fund II followed the news of MDH Partners recapitalizing its Sunbelt Logistics Portfolio for $1.26 billion to a global institutional investor in June 2022.
MDH Partners has remained very active this year, acquiring nearly five million square feet of industrial assets throughout the U.S. The firm recently expanded its portfolio into new markets including California, Minnesota, Maryland, Indiana, Illinois and Pennsylvania. MDH currently owns over 101 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.