#United States #Chicago #JLL #Apollo #Lower Terra

$252.5 Million Financing for Lower Terra Industrial Portfolio

JLL's Capital Markets team has recently announced the successful arrangement of $252.5 million in financing for the Lower Terra Industrial Portfolio. This portfolio, comprising 21 light industrial properties that total 3.64 million square feet, spans 17 prime markets across the United States. This strategic deal showcases JLL's expertise in the real estate industry and highlights the growing demand for industrial spaces.

The properties are well-distributed, covering 13 states across various regions including the East, West, Central, and Southeast. This geographical diversification is key, as it provides access to labor markets that make up approximately 18% of the entire U.S. workforce. The portfolio not only demonstrates a robust infrastructure but also benefits from strong tenant commitment, with an impressive average lease tenure of over 30 years. Notably, it includes several mission-critical facilities that have seen significant capital investments.

Currently, the properties are 98% occupied by 16 diverse tenants across multiple industries, covering some of the largest sectors of the U.S. economy. The portfolio's fruitful alignment with the manufacturing sector allows it to capitalize on the rising leasing demands, which have surged as leases expiring create new opportunities for new agreements. JLL has recently reported a 17.4% increase in new manufacturing leasing activity, indicating a recovering market after the disruption caused by the pandemic.

Leading JLL's Capital Markets Debt Advisory team were Senior Director Lucas Borges, Senior Managing Director Matthew Schoenfeldt, and Associate Tara Hagerty. Borges remarked on the portfolio's potential, stating, "This portfolio represented an exceptional opportunity to finance well-maintained, mission-critical industrial facilities with an institutional sponsorship group that brings unrivaled sector expertise. The combination of the portfolio's geographic diversity, long-term tenant base, and strategic positioning in markets with strong industrial fundamentals made this an attractive investment opportunity in today's capital markets environment."

The team at JLL recognizes that the industrial real estate market is rapidly evolving, responding to e-commerce growth, supply chain needs, and the ongoing shift in consumer behavior. Their effective capital solutions cater not just to real estate investors but also to businesses looking to occupy these spaces. With over 3,000 Capital Markets specialists worldwide, JLL stands out with its comprehensive understanding of local markets paired with global investment insight. They provide top-tier solutions, including investment sales, debt advisory, equity advisory, and recapitalization.

For Brennan Investment Group, the sponsor of this portfolio, this financing deal aligns with their commitment to acquiring and developing industrial properties in major metropolitan areas. Based in Chicago, Brennan Investment Group has been active in the real estate market since 2010, having acquired or developed approximately $6.5 billion worth of industrial real estate across 30 states. As they continue to grow, their focus rests on achieving outstanding risk-adjusted returns through strategic partnerships with private and institutional investors.

Farallon Capital Management, LLC, a partner in this financing effort, is known for its global investment strategies focusing on capital preservation and thoughtful asset allocation. Founded in 1986, Farallon seeks to invest across various asset classes, utilizing rigorous fundamental research methods.

In conclusion, this significant financing effort for the Lower Terra Industrial Portfolio underlines the evolving landscape of the American industrial real estate market. As companies seek to optimize their operational efficiency and navigate the new economic environment, opportunities like these are crucial for creating the infrastructure needed to support growth in diverse sectors. For further updates on JLL and related announcements, interested parties can stay tuned to JLL's newsroom as they continue to shape the future of commercial real estate.