On behalf of Burton-Katzman and DRA Advisors, Newmark has arranged about $150 million of financing proceeds to facilitate the acquisition of 24 strategically located industrial properties across the Midwest.
The Newmark team was led by co-heads of debt and structured financ Jordan Roeschlaub and Dustin Stolly, along with senior managing director Chris Kramer. Protective Life, Old National Bank and One America originated the loans.
The portfolio spans 2.2 million square feet, is currently 99% leased with a five-year weighted average lease term and features a diversified national tenant roster. The combination of single- and multi-tenant commercial properties has a proven track record of long-term stability.
The portfolio has retained occupancy levels above 99% for the past decade, with current in-place tenants averaging more than 10 years in their space. With more than 40 tenants on the rent roll, no user occupies more than 15% of the portfolio’s square footage, effectively mitigating rollover risk.
The Detroit industrial market continues to experience strong market fundamentals; vacancy rates continue to sit near all-time lows, generating double-digit rent growth year-over-year post-pandemic. The portfolio features assets across dense industrial hubs with the highest barriers to entry, including Auburn Hills, Sterling Heights, Dearborn and Livonia.
The Burton-Katzman team has successfully operated the portfolio historically and developed extensive relationships with the existing tenancy, allowing them to create strategic leasing transactions as the preeminent operator of light industrial across the Detroit metro. DRA Advisors has an extensive track record, including over 84 million square feet of industrial acquisitions since its inception.