Chicago-based Pearlmark closed on a $15.5 million mezzanine debt investment for the refinance of the 100% occupied, 10-asset SparrowHawk Industrial Portfolio in the Kansas City and St. Louis MSAs.
The properties in this portfolio are well-located warehouse and light industrial assets totaling 1.9 million square feet. Five properties are located in the Kansas City MSA and five properties in the St. Louis MSA.
Both Kansas City and St. Louis are strongly-positioned midwestern industrial markets that serve as key transportation links between both coasts and between Canada and Mexico. Both markets have vacancy and availability rates below the national average and have limited industrial development pipelines. The Portfolio was constructed between 1994 and 2021 and the warehouse properties have 28 to 32-foot clear heights.
The investment was made on behalf of Pearlmark Mezzanine Realty Partners V, L.P. The senior loan was provided by an entity managed by Argentic Investment Management LLC (“Argentic”). The Portfolio is owned by SparrowHawk, an industrial real estate investment firm that specializes in the acquisition and management of industrial portfolios. Brian Walsh of JLL arranged the transaction representing SparrowHawk.
