JLL secures $357.8M acquisition financing for industrial portfolio

Rhea-AI Summary

JLL Capital Markets has arranged $357.8 million in acquisition financing for MDH F3 Arctic Portfolio, a fully leased 5.5-million-square-foot industrial portfolio. The financing was secured through Wells Fargo Bank and Capital One for borrower MDH Partners. The portfolio comprises 12 state-of-the-art buildings across eight assets in South Carolina, Pennsylvania, Illinois, and Texas.

The properties, ranging from 140,300 to 1,034,200 square feet with an average clear height of 34 feet, are strategically located in key metros including Houston, Austin, Chicago, Greenville, and Middletown. All tenants are strongly credit-rated national household brands from diverse industries including automotive, e-commerce, food and beverage, and home goods.

Positive

• Successfully secured $357.8M in acquisition financing
• Portfolio is 100% leased with strong credit-rated national tenants
• Strategic locations in high-growth markets across 4 states
• Diverse tenant mix across multiple industries reduces sector risk
• Modern facilities with state-of-the-art specifications

Negative

• None.

The fully leased 5.5M SF industrial portfolio spans four states

MIAMI, Dec. 18, 2024 /PRNewswire/ -- JLL's Capital Markets group announced today that it has arranged $357.8 million in acquisition financing for MDH F3 Arctic Portfolio, a 5.5-million-square-foot, 100% leased industrial portfolio located in South Carolina, Pennsylvania, Illinois and Texas.

JLL represented the borrower, MDH Partners, to secure the loan through Wells Fargo Bank, N.A. and Capital One, N.A. via a balance sheet execution.    

The portfolio includes eight assets across 12 state-of-the-art buildings, ranging from 140,300 to 1,034,200 square feet, with an average clear height of 34 feet. The properties feature ample dock doors, trailer parking and car parking to accommodate high-volume distribution operations. Tenants are all strongly credit-rated, national household brands, and represent a diverse mix of industries including automotive, e-commerce, food and beverage and home goods.

The portfolio spans key metros including Houston, Texas; Austin, Texas; Chicago, Illinois; Greenville, South Carolina; and Middletown, Pennsylvania. These locations offer superior connectivity to major transportation networks and dense population centers, enhancing the portfolio's strategic value for tenants engaged in regional and national distribution.

The JLL Debt Advisory team was led by Senior Managing Directors Chris Drew, Michael Cosby and Ryan Ade, Managing Director Brian Gaswirth, Director Jimmy Calvo and Analyst Nicole Barba. Nathan Balmes and Michael Loffredo led the debt execution on MDH's team. 

"This financing represents a significant milestone for MDH Partners as they continue to expand their industrial footprint across high-growth markets," said Drew. "The institutional sponsorship, strong tenant roster, strategic locations and quality of the assets made this an attractive opportunity for lenders in today's capital markets environment."

"The Arctic Portfolio was compiled through five individual acquisitions between August and October, collectively marking the beginning of the investment of MDH Fund 3," said Nathan Balmes of MDH Partners. "JLL has once again facilitated a seamless execution aligning our debt strategy with our portfolio investment strategy, and we are excited to expand our relationship with Wells Fargo and Capital One. We expect to remain active in acquiring and developing in 2025, targeting high-quality industrial assets in dynamic markets."   

JLL's Capital Markets group 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 $20.8 billion and operations in over 80 countries around the world, our more than 111,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAY^SM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.

About MDH Partners
MDH Partners is an Atlanta-based real estate investment company managing its discretionary funds targeting industrial real estate across the United States on behalf of its institutional investors. Founded in 2005 as the successor to a fifty-year-old local real estate development company, MDH Partners has led and/or participated in over $7 billion (90 million square feet) of acquisitions, developments, and asset management as an advisor and investor. For more information, visit www.mdhpartners.com.

Contact: Grace Lewis, JLL PR
Phone: +1 903 520 3478  
Email: grace.lewis@jll.com

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SOURCE JLL

FAQ

What is the total value of JLL's recent industrial portfolio financing deal?

JLL arranged $357.8 million in acquisition financing for the MDH F3 Arctic Portfolio.

How many square feet does JLL's newly financed industrial portfolio cover?

The industrial portfolio covers 5.5 million square feet across 12 buildings.

Which states are included in JLL's Arctic Portfolio acquisition?

The portfolio includes properties in South Carolina, Pennsylvania, Illinois, and Texas.

What is the occupancy rate of JLL's newly financed industrial portfolio?

The industrial portfolio is 100% leased with strongly credit-rated national household brands as tenants.

Which banks provided the financing for JLL's Arctic Portfolio deal?

Wells Fargo Bank, N.A. and Capital One, N.A. provided the financing through a balance sheet execution.

What is the size range of the buildings in JLL's Arctic Portfolio?

The buildings range from 140,300 to 1,034,200 square feet, with an average clear height of 34 feet.