#United States #New York #SkyREM #JLL Capital Markets #Apollo

SkyREM Secures Major Loan for Industrial Portfolio

In a significant financial move, SkyREM has successfully secured $170 million in refinancing for its extensive industrial portfolio, which encompasses 2.5 million square feet across 10 buildings. The loan was arranged by JLL Capital Markets, marking a pivotal step in enhancing SkyREM's operational capacity. This collection of industrial and warehouse distribution assets is strategically located throughout the Northeast, Southeast, and Midwest regions of the United States.

Details of the Financing

The financing agreement, a fixed-rate, five-year loan, was facilitated through the efforts of JLL Capital Markets, which represented SkyREM in this transaction. The high-profile assets encompass properties in some of the most desirable markets across states such as South Carolina, North Carolina, New Jersey, Wisconsin, Georgia, Iowa, and Pennsylvania. These regions are known for their robust labor markets and favorable demographic trends, making them prime locations for industrial operations.

All properties within the portfolio maintain a high occupancy rate of 99%, leased to 15 tenants spanning various sectors, including technology, manufacturing, logistics, and government services. The average tenancy duration for these occupants ranges around eight years, with some relations extending over two decades, demonstrating longstanding stability within the portfolio.

“This refinancing allows us to expand our capital partnerships, particularly appreciating the collaboration with Apollo as a trusted lending institution,” stated Alex Dembitzer, Founder of SkyREM. He further expressed gratitude to the JLL team for their proficient handling of the multi-asset financing, indicating a positive outlook for future collaborative endeavors.

Despite a general downturn in industrial leasing in the wake of the pandemic, the logistics and parcel delivery markets continue to thrive. The surge in demand from third-party logistics (3PL) providers in Asia has been a key driver for this sector, highlighting the shifting dynamics of global supply chains.

Market Insights

Notably, New Jersey’s industrial market saw record-setting leasing activity, achieving 14 million square feet in the third quarter of 2024—the second highest volume on record. Such trends underscore the resilience and increasing demand for industrial real estate, even in the face of broader economic challenges.

JLL Capital Markets, recognized as a premier provider of capital solutions for real estate, has more than 3,000 specialists worldwide. Their expertise ensures optimal outcomes whether through investment sales, advisory services, or debt and equity solutions, thereby positioning them as trusted advisors in the evolving real estate market.

About SkyREM and JLL

Headquartered in Philadelphia and New York City, SkyREM operates a diverse portfolio of properties across the United States. The firm is actively involved in acquiring new properties, supporting the continued growth and diversification of its assets.

JLL, a global leader in commercial real estate services, boasts a rich history of over 200 years, guiding clients through all facets of real estate transactions and investments. With annual revenues reaching $20.8 billion and operations in over 80 countries, JLL remains at the forefront of real estate innovation and client service.

For further details about SkyREM's portfolio or for inquiries, contacts include Marc Civitillo or James Pancetti at 212-888-6920, or visit www.skyrem.com. For insights and updates, JLL's newsroom is available online to keep stakeholders informed about market trends and opportunities.

This refinancing initiative not only solidifies SkyREM's financial standing but also paves the way for future investments, underscoring the ongoing vitality of the industrial real estate sector in the United States.