MDH Partners closed $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.
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.
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 5 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.
