$577.625M SASB financing secured for LBA Logistics Value Fund VII Industrial Portfolio
Rhea-AI Summary
JLL's Capital Markets group has successfully arranged a $577.625 million CMBS single-borrower (SASB) financing for LBA Logistics Value Fund VII Industrial Portfolio. The portfolio consists of 25 industrial properties across 10 states, totaling 7,040,030 square feet. JLL secured a floating-rate loan for a five-year term through a syndicate led by J.P. Morgan, with Bank of America and Wells Fargo as joint bookrunners. The final pricing was approximately 195 bps over SOFR.
The portfolio boasts a 100% occupancy rate with a diverse tenant mix across various industries. Located in highly desirable markets nationwide, the properties benefit from strong demographics, with a weighted average population of 1.0 million within a 30-minute radius and 2.9 million within a 60-minute radius of each asset.
Positive
- Secured $577.625 million SASB financing for a large industrial portfolio
- 100% occupancy rate across 25 properties in 10 states
- Diverse tenant mix across dynamic industries
- Strategic locations in highly desirable markets with strong demographics
- Lowest pricing for a floating-rate industrial SASB since March
- Significant oversubscription and tightened spreads across the capital stack
Negative
- None.
Insights
The
The pricing of approximately 195 bps over SOFR is notably competitive, especially for a floating-rate industrial SASB. This favorable pricing suggests strong lender confidence in both the sponsor and the underlying assets. The involvement of major financial institutions like J.P. Morgan, Bank of America and Wells Fargo further underscores the deal's credibility.
For JLL, this transaction showcases their ability to execute large, complex financings in the industrial sector, potentially leading to more business in this space. The deal's success could positively impact JLL's capital markets revenue and reputation, particularly in the industrial real estate segment.
This financing deal reflects the ongoing strength of the industrial real estate sector, which has been a top-performing asset class in recent years. The portfolio's strategic focus on in-fill locations in major markets aligns with current trends favoring last-mile logistics and e-commerce fulfillment centers.
The weighted average population of 1.0 million within a 30-minute radius of each asset indicates strong demographic support for these properties. This positioning is important for tenants in industries like web services, food and beverage and logistics, which require proximity to large consumer bases.
The successful execution of this financing, described as "significantly oversubscribed," suggests continued investor appetite for quality industrial assets. This demand could support further growth and development in the sector, potentially benefiting companies like JLL that have expertise in industrial real estate transactions and financing.
JLL's Capital Markets group led the financing efforts for the 25-property, 7M SF portfolio located across 10 states
JLL worked on behalf of LBA Logistics to secure the floating-rate loan for a five-year term, inclusive of extensions, through a syndicate led by J.P. Morgan, with Bank of America and Wells Fargo as joint bookrunners. Final pricing was approximately 195 bps over SOFR.
The properties are strategically located across
Featuring well-located, in-fill industrial assets, the portfolio is positioned in highly desirable markets nationwide, including prime locations such as
The JLL Debt Advisory team was led by Executive Managing Director and National Production Leader Kevin MacKenzie, Senior Managing Director and Industrial Capital Markets Co-Lead Brian Torp and Vice President Christopher Pratt.
"This is the lowest pricing for a floating-rate industrial SASB since March, which is a testament to the strength of the sponsor, portfolio and strategy," said MacKenzie. "Being patient throughout the process and timing the marketing properly led to being significantly oversubscribed, with spreads tightening across the capital stack, demonstrating the current demand in the market."
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
For more news, videos and research resources, please visit JLL's newsroom.
About JLL
For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of
Contact: Grace Lewis, JLL PR
Phone: +1 903 520 3478
Email: grace.lewis@jll.com
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SOURCE JLL
FAQ
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