Marcus & Millichap’s IPA Capital Markets Arranges $96.7M Financing from Bank OZK for Northern Illinois Industrial Portfolio

Key Terms

non-recourse financing financial

Non-recourse financing is a type of loan where the borrower is only responsible for repaying the amount borrowed with the asset serving as collateral. If the borrower cannot repay, the lender can seize the asset but cannot pursue the borrower personally for any additional money. This arrangement helps investors limit their risk, knowing they won’t be held liable beyond the asset securing the loan.

build-to-suit technical

Build-to-suit is a process where a property is custom-designed and constructed specifically to meet the needs of a particular tenant or user. It’s like ordering a custom-made suit instead of buying one off the rack—tailored to fit exactly what the tenant requires. For investors, build-to-suit properties can offer stable, long-term income because they are designed to attract and retain specific tenants who often sign long-term agreements.

mezzanine financing financial

Mezzanine financing is a hybrid form of capital that sits between a company’s senior loan and its ownership, typically structured as a subordinated loan or convertible instrument that pays higher interest and may include rights to convert into equity. Think of it like a second mortgage or a booster seat: it carries more risk than the main loan but is less permanent than selling shares. It matters to investors because it can boost returns for lenders, increase a company’s debt burden, and potentially dilute equity if converted, influencing risk and reward.

preferred equity financial

Preferred equity is a type of investment that sits between common stock and debt in a company's financial structure. It typically offers investors priority in receiving dividends and getting their money back if the company runs into trouble, making it somewhat safer than regular shares. Investors value preferred equity because it provides a steady income stream while still allowing some participation in the company's success.

joint venture equity financial

Joint venture equity is the ownership stake a company or investor holds in a business formed and run together with one or more partners. Think of several neighbors pooling money to buy and manage a rental property: each owner’s share determines their share of profits, losses, decision-making influence and liability. For investors, joint venture equity matters because it affects future cash flow, balance-sheet exposure and how much control and risk come from a shared enterprise.

sponsor equity financial

Sponsor equity is the ownership stake that a sponsoring party puts into a business deal or investment, often as the sponsor’s own cash or shares. Think of it as the sponsor’s down payment and shows how much skin they have in the game; higher sponsor equity signals stronger alignment with other investors and greater willingness to take risk, which can affect potential returns, dilution and how decisions are made.

ROCKFORD, Ill.--(BUSINESS WIRE)-- IPA Capital Markets, a division of Marcus & Millichap (NYSE: MMI) specializing in capital markets services for major private and institutional clients, announced today the $96.7 million financing of three industrial properties in Rockford, Illinois.

IPA Capital Markets’ Frank Montalto, managing director, and Ethan Splan, associate director in the firm’s Chicago downtown office, secured three-year, non-recourse financing with Bank OZK on behalf of Craig Erdmier, a prolific Northern Illinois–based design-build and construction management professional and general contractor.

The portfolio comprises over 650,000 square feet, including two fully stabilized, mission-critical industrial buildings totaling 503,395 square feet. Each was developed as a build-to-suit facility for a global pharmaceutical services provider with strong credit fundamentals and ongoing expansion needs. Both properties are located within established industrial corridors and function as critical logistics and distribution hubs supporting the tenant’s national operations.

The financing will be used to consolidate the stabilized assets and cross-collateralize the income-producing properties to support the construction of the third facility, which will total approximately 155,000 square feet.

“This transaction presented a rare opportunity to finance a sponsor-developed industrial portfolio backed by a strong credit tenant with zero leasing risk,” said Montalto. “We’re pleased to deliver a solution that supports our client’s growth strategy and underscores the strength of the industrial sector.”

About IPA Capital Markets

IPA Capital Markets is a division of Marcus & Millichap (NYSE: MMI). IPA Capital Markets provides major private and institutional clients with commercial real estate capital markets financing solutions, including debt, mezzanine financing, preferred and joint venture equity, and sponsor equity. For more information, please visit institutionalpropertyadvisors.com/capital-markets.

About Bank OZK

Bank OZK (Nasdaq: OZK), through its Real Estate Specialties Group (RESG), provides financing on commercial real estate projects throughout the nation. RESG is considered a preeminent, market-leading construction lender focused on senior secured financing for a variety of property types including mixed use, multifamily housing, condominiums, office, hospitality, life sciences, industrial and retail. For the five years ended September 30, 2025, RESG originated approximately $39.57 billion in new loans. For more information, visit ozk.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20251222461682/en/

Media Contact:

Gina Relva, VP Public Relations

gina.relva@marcusmillichap.com

Source: Marcus & Millichap