PGIM Lends $41M on Purchase of Industrial Assets in Las Vegas and Chicago

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PGIM Real Estate has provided $41 million in debt to Dallas-based Dalfen Industrial to finance its purchase of three industrial assets located in the Las Vegas and Chicago metropolitan areas, Commercial Observer has learned. 

The three-year acquisition loan includes two one-year extension options, and was originated out of PGIM’s U.S. Core Plus debt fund, the firm said. 

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PGIM Vice President Trevor Arnholt led the origination team, and said the three assets “will continue to benefit as the sponsor executes its planned marketing and lease-up strategy for the buildings.” 

Altogether, the three properties comprise about 438,000 square feet. Two of the assets are located in Henderson, Nev., a suburb situated southeast of Las Vegas, and the other is located in Aurora, Ill. 

One of the buildings is AirParc South at 1550 Executive Airport Drive in Henderson, Nev., which sits on almost 6 acres and spans roughly 106,700 square feet, according to listing information on CommercialCafe. It was built in 2019.

AirParc South in Henderson, Nev.
AirParc South in Henderson, Nev. Courtesy: PGIM

The other Henderson property is the Suncrest Commerce Center at 1051 Mary Crest Road. Built in 1997, it sits on 7.3 acres and spans more than 153,000 square feet, with two office spaces, according to CommercialCafe data. Monthly leasing rates sit at $9 per square foot per year, per the listing.

The final property that rounds out the portfolio is the Butterfield Logistics Center at 1103 Butterfield Road in Aurora, a suburb on the western outskirts of Chicago. 

“This transaction provides our fund with access to a cross-collateralized industrial portfolio with in-place cash flow, institutional-quality assets, and locations with strong market fundamentals,” said Steve Bailey, a managing director and senior portfolio manager for PGIM’s U.S. Core Plus debt fund.