Business
Newmark Facilitates $240M Industrial Joint Venture Between DRA Advisors and Burton Katzman; and go forward Programmatic Venture
NEW YORK, March 6, 2023 /PRNewswire/ -- Newmark has arranged a $240 million joint venture (the "Venture") between the Sponsor, Burton Katzman and DRA Advisors
About this update from Newmark Group, Inc.
[{"type":"text","content":"NEW YORK, March 6, 2023 /PRNewswire/ -- Newmark has arranged a $240 million joint venture (the \"Venture\") between the Sponsor, Burton Katzman and DRA Advisors for the recapitalization of 24 infill light industrial properties in the Midwest. The Newmark team was led by Vice-Chairmen and Co-Heads of Debt & Structured Finance Jordan Roeschlaub and Dustin Stolly, along with Director Eden Abraham. Executive Managing Director Daniel Canvasser from the Detroit office provided regional support on the transaction.\n\n \n \n \n \n \n \n\n \nThe 24-property industrial portfolio spans over 2.2 million square feet, is 99% leased with a five-year weighted average lease term (WALT) and features a diversified national tenant roster. With over 40 tenants on the rent roll, no tenant occupies more than 15% of the portfolio's square footage, mitigating rollover risk. Newmark also arranged the financing for this transaction.\nThe Venture will target value-add returns by acquiring industrial assets across the Midwest where rents are below market. DRA Advisors and Burton Katzam (the Sponsor) can create value through strategic leasing via their extensive relationships in the automotive industry. Additionally, Sponsorship will be developing and expanding the space of several assets in the seed portfolio.\n\"With a diversified rent roll and strong WALT, the seed portfolio is comprised of some of the most credit-worthy tenants in the automotive industry,\" commented Roeschlaub. \"This opportunity was well received by the capital markets community and demonstrated the strong institutional investor demand for light industrial assets,\" added Stolly.\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. \nThe effort to raise capital for the Venture is part of Newmark's continued push into equity financing focused on raising capital for both platform and programmatic joint ventures.\nAbout Burton-KatzmanBurton-Katzman is a fully integrated real estate company with extensive experience and expertise across property acquisition, planning and development, project and construction management, strategic planning and asset management. With over 110 ...