Newmark facilitates a $150 million acquisition loan for DRA Advisors and Burton Katzman on a SF2.2 million industrial portfolio
NEW YORK, March 8, 2023 /PRNewswire/ — Newmark has reached approximate agreements on behalf of Burton-Katzman and DRA Advisors 150 million dollars the Financing Proceeds to facilitate the acquisition of 24 strategically located industrial properties in the Midwest (the “Portfolio”). The Newmark team was led by Co-Heads of Debt & Structured Finance, Jordan Röschlaub And Dustin Stollalong with Senior Managing Director Chris Kramer. Protective Life, Old National Bank, and One America provided the loans.
The portfolio spans 2.2 million square feet, is currently 99% occupied with a five-year weighted average lease term (WALT) and has a diversified national tenant list. The combination of single and multi-tenant commercial properties has proven to be stable over the long term; The portfolio has maintained an occupancy rate of over 99% over the past decade, with current tenants having lived in their space for an average of more than a decade. With over 40 tenants on the rental list, no occupant occupies more than 15% of the portfolio’s square footage, effectively mitigating rollover risk.
“Investments in industrial real estate by institutional owners remain an asset class of choice for investors, particularly those in secondary and tertiary markets that still offer growth potential,” Stolly said.
The Detroit the industrial market continues to experience strong market fundamentals; Vacancy rates remain near all-time lows, driving double-digit year-on-year rental growth post-pandemic. The portfolio includes assets in dense industrial centers with the highest barriers to entry, including Maroon Hills, Sterling Heights, Dearborn And Livonia.
Burton-Katzman’s team has a history of successfully operating the portfolio and developing extensive relationships with the existing leases that have enabled them to execute strategic leasing transactions as a premier operator of light industrial businesses around the world Detroit Metro. DRA Advisors has an extensive track record, including over 84 million square feet of industry acquisitions since inception.
“The portfolio represents a very compelling opportunity to acquire a dynamic, well staffed and liquid light industrial portfolio on an attractive basis with a quality joint venture partner,” he stated Brett GottliebManaging Director of DRA Advisors.
About Burton Katzman
Burton-Katzman is a fully integrated real estate company with extensive experience and expertise in real estate acquisition, planning and development, project and construction management, strategic planning and asset management. With over 110 years of real estate industry experience focused on the industrial market, Burton-Katzman has a solid understanding of the effective construction and management of properties across multiple asset classes.
About DRA Advisors
DRA Advisors LLC is a new York-based registered investment advisor with approximately 95 employees specializing in real estate investment management services for institutional and private investors including pension funds, university endowments, sovereign wealth funds, endowments and insurance companies. Since DRA was founded in 1986, the company has opened additional offices in Miami And san francisco when acquiring about $37.8 billion of real estate. The acquisitions include 84 million square feet of industrial, 65 million square feet of office, 87 million square feet of retail and 84,000 multi-family homes. Away 09/30/2022DRA has $12.3 billion on gross assets under management. http://draadvisors.com
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”) is a leading global commercial real estate provider, seamlessly supporting every phase of the real estate lifecycle. Newmark’s comprehensive range of services and products is individually tailored to each client, from owners to occupiers, from investors to founders and from start-ups to blue chip companies. By combining the platform’s global reach with market intelligence in both established and emerging real estate markets, Newmark offers clients across the spectrum of industries a first class service. Newmark generated sales of approx $2.7 billion at the end of the year December 31, 2022. Newmark’s corporate offices work together with its business partners from approximately 180 offices with nearly 6,700 professionals around the world. To learn more visit nmrk.com or follow us @newmark.
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