MDH Partners today announces the closing of $59.5 million in financing from Capital One. The Gemini Loan supports MDH Partners’ recent acquisitions of the 670,914-square-foot, Fort Worth Logistics Hub in Fort Worth, Texas, and the 445,138-square-foot Desoto Logistics Center, located near Memphis, Tennessee. Both assets were purchased earlier this year, from VanTrust and Core5. The Gemini Loan is the firm’s first loan with Capital One. Chris Drew and Maxx Carney of JLL represented MDH Partners in the deal. Mary Lucy Lester and Courtney Murchison of Capital One originated the loan for the firm.
“MDH Partners continues to secure competitive financing because our acquisition strategy has a demonstrated history of success,” said Arun Singh, CFO of MDH Partners. “We look forward to what’s to come as we embark on this new relationship.”
The closing of the Gemini Loan follows MDH Partners’ June closing of the Discovery Loan Expansion. Both loans are part of MDH Partners’ Fund II, which originally closed in April 2021 and was upsized from $575 million to $750 million of equity in October 2022. With $2 billion in buying power, Fund II is 80% invested in dozens of industrial acquisitions and new developments across the country. Prior to upsizing Fund II, MDH Partners recapitalized its Sunbelt Logistics Portfolio for $1.26 billion to a global institutional investor in June 2022.
“We are excited to forge a new relationship with MDH Partners,” said Lester, SVP Relationship Manager at Capital One. “We were thrilled to work alongside the team on this transaction and look forward to collaborating and supporting MDH as they continue to execute on their strategic vision.”
Fort Worth Logistics Hub in Fort Worth and Desoto Logistics Center in Memphis are fully occupied with 6.13 years of weighted average lease term remaining. Both facilities were delivered in 2022. According to JLL’s Q1 Industrial Outlook report, vacancy rates have increased 40 basis points from the prior quarter to 3.8%. Absorption in the first quarter posted a 47% year-over-year decline as 58.6 million square feet was absorbed.
MDH Partners has remained active this year, acquiring nearly five million square feet of industrial assets throughout the U.S. since January. The firm recently expanded its portfolio into new markets including California, Minnesota, Maryland, Indiana, Illinois and Pennsylvania, and currently owns more than 106 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.
About Capital One
Capital One Financial Corporation (www.capitalone.com) is a financial holding company which, along with its subsidiaries, had $349.8 billion in deposits and $471.7 billion in total assets as of March 31, 2023. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has branches located primarily in New York, Louisiana, Texas, Maryland, Virginia, New Jersey and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol “COF” and is included in the S&P 100 index.
