Allianz Provides $135M Construction Take-Out for Baltimore Industrial Property Duo
Tradepoint Atlantic has secured $135 million in loans for two recently constructed Class-A industrial buildings in Sparrows Point, Md., near Baltimore, according to a press release from HFF, which represented the borrower in the transaction.
The financing package replaces construction debt on the properties and comprises two separate, non-recourse loans from Allianz Real Estate.
A $71.8 million, 18-year fixed-rate loan was secured for a 1.35-million-square foot cross-dock building located at 7030 Tradepoint Avenue, which is fully leased to Under Armour. A $63.2 million, 17-year fixed-rate loan was also provided for a 857,514-square-foot cross-dock facility at 1700 Sparrows Point Boulevard that’s fully leased to Amazon.
Both tenants signed 15-year leases in 2018, per an HFF spokeswoman. The funds will be used for construction takeout and long-term permanent financing, she said, adding that the transaction with Allianz closed in September.
The buildings comprise 2.2 million square feet within an industrial project that spans 3,250 acres on the Sparrows Point peninsula, about five miles from Baltimore’s central business district.
HFF’s Cary Abod, Rob Carey and Kevin Byrd represented Tradepoint—which was created by private investment firm Redwood Capital and financial services company Hilco Global—in the debt negotiations.
“The long-term leases to Under Armour and Amazon, state-of-the-art construction and desirable sponsorship yielded a highly competitive bidding process,” Abod said in a prepared statement. “Allianz performed admirably as the lender, and we look forward to watching the continued development of the revolutionary Tradepoint Atlantic project.”
An Allianz spokeswoman did not return Commercial Observer’s request for comment.