TH Real Estate Lends $135M to Finance Southern California Industrial Portfolio


TH Real Estate has provided a $135 million, fixed-rate loan to real estate investment firm Alere Property Group secured by a 19-asset industrial portfolio located throughout Southern California, Commercial Observer can exclusively report.

The deal, which is TH Real Estate’s first with Alere, marks a continuation of the firm’s expansion into the industrial sector. Last week, TH—an affiliate of Nuveen, the investment management arm of TIAA—closed its $330 million U.S. Strategic Industrial Fund I, which was deployed to acquire and develop industrial assets in “last-mile” locations—areas near transportation hubs and nearby major e-commerce supply chains—and fill the void of growing demand for assets that can facilitate e-commerce deliveries in major metropolitan areas across the country, as CO reported.

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Michael Jameson, a managing director of West Coast debt originations at TH Real Estate said in a statement that the firm is looking to expand its lending presence in the Los Angeles and Inland Empire regions, hinting that Alere—as one of the “premier developers and operators” of industrial assets in Southern California—is an easy sponsor to back as part of this push.

Newport Beach, Calif.-based Alere’s portfolio is 95 percent leased to 18 tenants, and together totals 1.7 million square feet across 19 properties located in the Central Los Angeles, South Bay—where nine of the assets are situated nearby the Port of Los Angeles and the Port of Long Beach—and Inland Empire markets, according to TH Real Estate.

TH expects industrial rent growth will continue to outperform other areas of commercial real estate in 2019 as the firm believes supply will remain constrained for light industrial properties and assets used for e-commerce distribution, according to the firm’s 2019 industrial outlook report.

An official at Alere was not immediately available for comment on the deal.