TD Bank Lends $65M on DC Industrial Portfolio

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Miami-based Elion Partners and Washington, D.C.-based Buchanan Partners have closed a $65 million refinance for 12 industrial buildings in Chantilly, Va., Commercial Observer has learned. 

TD Bank provided the debt, in a transaction negotiated by Newmark Capital Markets. Dustin Stolly and Jordan Roeschlaub, co-heads of Newmark’s New York Debt & Structured Finance, led the deal along with Joe Donato, vice chairman of D.C. Debt & Structured Finance, and senior managing directors Chris Kramer and Nick Scribani.

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The partnership has owned the portfolio since August 2017 — after acquiring it from Ares Capital Corporation and Adler Group — and successfully filled existing building vacancies following the purchase. The portfolio — located just off Route 28 in the northern Virginia submarkets of Westfields, Chantilly, and Dulles — comprises 600,000 square feet.  

“We are thrilled to represent Elion Partners and Buchanan in another successful transaction,” Roeschlaub said. “As one of the most active and knowledgeable players in the sector, Elion’s institutional industrial experience makes them an attractive partner to both existing and new lending relationships. They have an exciting acquisition pipeline and plenty of dry powder to capitalize on the bullish logistics space.”

One of the most resilient regions in the U.S., the Washington, D.C. Metro area’s economy is propelled by strong growth in the business and professional services sectors, as well as enduring economic stability provided by the Federal Government. The region has also seen the emergence of a more diverse and more dynamic economy including a technology cluster and rapidly growing biotech and aerospace industries.

Elion Partners is an industrial real estate-focused  investment firm with around $1.6 billion in assets under management. It that targets first-, middle- and last-mile industrial assets in “high-barrier, high-growth urban markets where long-term demand for logistics real estate is primarily driven by the accelerated pace of e-commerce,” according to its website. In 2020, it acquired approximately 1.3 million square feet of last-mile industrial product in and around cities such as Seattle and San Francisco, as well as in key industrial markets in Southern California and South Florida.

“This asset class aligns with our investment strategy of acquiring supply-constrained properties at or below replacement costs,” Juan DeAngulo, a managing principal of Elion Partners, said at the time of the now-refinanced portfolio’s acquisition. “With sound operating fundamentals, we are excited to embark on this strategic joint venture with Buchanan Partners and look forward to continuing to grow our investments in this region.”