Invesco Real Estate Income Trust Inc. Closes on Mezzanine Loan for Warehousing Facility in Aurora, CO

Rhea-AI Summary

On January 25, 2023, Invesco Real Estate Income Trust (INREIT) announced a strategic financing partnership with Emigrant Bank for a $13 million mezzanine loan, complementing Emigrant's $39 million senior loan. This funding will support Stonemont Financial Group in acquiring a 478,461 square foot logistics facility in Aurora, Colorado, generating a 12% yield. The property is fully leased to a subsidiary of a highly-rated logistics provider and provides immediate access to major transport routes. With this transaction, INREIT's private real estate allocation rises to 8%. This move is part of INREIT's focus on high-quality income-producing properties.

Positive

• INREIT's mezzanine loan secures a 12% yield at closing.
• The acquisition aligns with INREIT's strategy to diversify its portfolio in industrial real estate.
• The property is fully leased to a high-quality tenant, enhancing income stability.

Negative

• None.

News Market Reaction – IVZ

-2.81%

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-2.81% News Effect

On the day this news was published, IVZ declined 2.81%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

DALLAS, Jan. 25, 2023 /PRNewswire/ -- Invesco Real Estate Income Trust Inc. ("INREIT"), an institutionally managed, public non-listed REIT, announced today the co-origination of a loan with Emigrant Bank, a New York State chartered bank, to Stonemont Financial Group ("Stonemont"), an Atlanta-based private real estate firm with $5.3 billion in assets under management. INREIT provided a $13 million mezzanine loan, together with Emigrant's $39 million senior loan, to finance Stonemont's acquisition of a distribution and warehousing facility in Aurora (Denver), Colorado.  This credit transaction generates a 12% yield at closing and brings INREIT's private real estate allocation to 8%.

Completed in 2022, the purpose-built property is 100% leased to a subsidiary of an investment grade rated global logistics service provider. The 478,461 square foot, Class A logistics facility includes state of the art features. It is located along the E-470 highway with immediate access to Denver International Airport, which is key for serving larger regional distribution centers and processing packages for last-mile delivery.

"We are pleased to expand our financing relationships and execute on this credit position for an institutional quality property," said R. Scott Dennis, President and Chief Executive Officer for INREIT. "Industrial real estate continues to display strong fundamentals and our ability to be a relationship lender helps us provide synergistic solutions for our partners and borrowers."

For more information about this investment and other INREIT properties, please visit https://www.invesco.com/inreit/investments.

About INREIT
Invesco Real Estate Income Trust Inc. ("INREIT") is an institutionally managed, public non-listed, monthly NAV REIT investing in a diversified portfolio of high quality, income producing properties located throughout the United States. Its thematic approach to investing focuses on where people consume, live, innovate and connect. INREIT seeks to invest in properties with resilient income and appreciation potential. INREIT expects to diversify its portfolio over time, including on a global basis. INREIT is managed by Invesco Advisers, Inc., a subsidiary of Invesco Ltd. and the registered investment adviser for Invesco Real Estate, the real estate investment center of Invesco Ltd. For more information about INREIT, please visit www.inreit.com.

About Invesco Real Estate
Invesco Real Estate is a global leader in the real estate investment management business with $89.9 billion in real estate assets under management, 577 employees and 21 regional offices across the U.S., Europe and Asia (as of June 30, 2022). Invesco Real Estate was established in 1983 and today invests across the risk return spectrum, from core to opportunistic; in equity and debt; listed and direct; locally and globally. Invesco Real Estate is a business name of Invesco Advisers, Inc., an indirect, wholly owned subsidiary of Invesco Ltd. Invesco Ltd. is an independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. NYSE: IVZ; http://www.invesco.com.

About Stonemont Financial Group
Stonemont Financial Group specializes in investing across a broad spectrum of real estate asset classes and geographies to deliver attractive risk-adjusted returns. Stonemont offers diversified and differentiated real estate investment strategies and vehicles to institutions, family offices, trusts and high net-worth individuals. The firm's founders and managing principals have a combined track record of more than 60 years' experience and $20 billion invested.

Invesco is not affiliated with Emigrant Bank or Stonemont Financial Group.

Contact: Jamie Braverman, jamie.braverman@invesco.com, 212-278-9630

 

View original content:https://www.prnewswire.com/news-releases/invesco-real-estate-income-trust-inc-closes-on-mezzanine-loan-for-warehousing-facility-in-aurora-co-301727823.html

SOURCE Invesco Real Estate Income Trust Inc.

FAQ

What loan did Invesco Real Estate Income Trust announce on January 25, 2023?

INREIT announced a co-origination of a $13 million mezzanine loan with Emigrant Bank.

What is the yield generated from the loan for the Aurora, Colorado facility?

The loan generates a 12% yield at closing.

What is the size of the logistics facility acquired by Stonemont Financial Group?

The facility is 478,461 square feet.

What percentage of INREIT's portfolio is now allocated to private real estate after this deal?

This transaction brings INREIT's private real estate allocation to 8%.

What kind of tenant occupies the new logistics property in Aurora, Colorado?

The property is fully leased to a subsidiary of an investment-grade rated global logistics service provider.