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Newmark Facilitates $150M Acquisition Loan for 2.2M SF Industrial Portfolio for DRA Advisors and Burton Katzman
NEW YORK, March 8, 2023 /PRNewswire/ -- On behalf of Burton-Katzman and DRA Advisors, Newmark has arranged approximately $150 million of financing proceeds to
About this update from Newmark Group, Inc.
[{"type":"text","content":"NEW YORK, March 8, 2023 /PRNewswire/ -- On behalf of Burton-Katzman and DRA Advisors, Newmark has arranged approximately $150 million of financing proceeds to facilitate the acquisition of 24 strategically located industrial properties across the Midwest (the \"Portfolio\"). The Newmark team was led by Co-Heads of Debt & Structured Finance, Jordan Roeschlaub and Dustin Stolly, along with Senior Managing Director Chris Kramer. Protective Life, Old National Bank and One America originated the loans.\n\n \n \n \n \n \n \n\n \nThe Portfolio spans 2.2 million square feet, is currently 99% leased with a five-year weighted average lease term (WALT) 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 over ten years in their space. With over 40 tenants on the rent roll, no user occupies more than 15% of the Portfolio's square footage, effectively mitigating rollover risk.\n\"Investment in industrial real estate by institutional owners remains a top-choice asset class for investors, especially those in secondary and tertiary markets that still offer growth potential,\" said Stolly.\nThe 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.\nThe 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.\n\"The Portfolio represents a highly compelling opportunity to acquire a dynamic, well-occupied, and cash-flowing light industrial portfolio at an attractive basis with a best-in-class joint venture partner,\" explained Brett Gottlieb, Managing Director for DRA Advisors. \nAbout Burton-Katzma...