JLL Arranges $357 Million Acquisition Financing for MDH's Arctic Portfolio

JLL Secures $357.8 Million Financing for Industrial Properties

In a remarkable move within the commercial real estate sector, JLL's Capital Markets group has successfully arranged a staggering $357.8 million in acquisition financing for the MDH F3 Arctic Portfolio. This portfolio, which boasts a massive 5.5 million square feet of fully leased industrial space, is strategically spread across four vital states: South Carolina, Pennsylvania, Illinois, and Texas.

The financing was facilitated through leading financial institutions Wells Fargo Bank, N.A. and Capital One, N.A., demonstrating JLL's robust connections within the capital markets. The portfolio, consisting of eight prime assets housed in twelve modern buildings, emphasizes efficiency with individual structures ranging from 140,300 to an impressive 1,034,200 square feet, and an average clear height of 34 feet. These features make it ideally suited for high-volume distribution operations, showcasing ample dock and trailer parking to meet tenant needs.

Tenants of these properties represent some of the most reputable brands across diverse industries, including automotive, e-commerce, food and beverage, and home goods. This ensures a solid and stable income stream for MDH Partners, as they embark on a significant expansion phase in the industrial real estate market.

The portfolio is strategically positioned in key metropolitan areas such as Houston, Austin, Chicago, Greenville, and Middletown, ensuring that tenants have access to superior connectivity to vital transportation networks and large population centers. This connectivity enhances the operational efficiencies for tenants who rely heavily on logistics and distribution, boosting the overall strategic allure of the portfolio.

JLL's Debt Advisory team, comprised of Senior Managing Directors Chris Drew, Michael Cosby, and Ryan Ade, among others, played an integral role in securing this financing. Drew commented on the deal, stating, "This financing represents a significant milestone for MDH Partners as they continue to expand their industrial footprint across high-growth markets." He highlighted that the portfolio's institutional backing, quality of the assets, and a strong tenant roster made it an attractive opportunity in the current capital markets landscape.

Further emphasizing the strategic nature of this acquisition, Nathan Balmes from MDH Partners noted, "The Arctic Portfolio was assembled through five individual acquisitions, marking the beginning of our investment strategy for MDH Fund 3." He expressed enthusiasm about the seamless execution facilitated by JLL, which aligned their debt strategy with their portfolio ambitions. Looking ahead, MDH Partners is expected to remain actively engaged in acquiring and developing high-quality industrial assets in dynamic markets throughout 2025.

In this context, JLL's role stands out as a full-service global provider of capital solutions catering to real estate investors and occupiers alike. Through their in-depth local market insights and global investor relationships, they consistently deliver top-tier solutions for various capital needs, whether it be investment sales, equity advisory, or debt restructuring.

With a strong network of over 3,000 Capital Markets specialists operating in nearly 50 countries, JLL has established itself as a leader in the realm of commercial real estate, which boasts a rich 200-year history of supporting clients in navigating the complexities of real estate investments.

As MDH Partners looks forward to further investments, they reaffirm their commitment to sectors poised for growth, signaling an exciting phase in U.S. industrial real estate management. With strategic planning and robust financing solutions, the future appears bright for both JLL and MDH Partners.

For additional information on JLL and its expansive suite of services, please visit JLL's newsroom. For insights into MDH Partners and its investment strategies, explore their official site.