3650 REIT Provides $60M Acquisition Loan for Industrial Portfolio
Alexander Property Holdings has secured $59.9 million to acquire a 10-property industrial portfolio spanning four states, Commercial Observer can first report.
3650 REIT originated the loan.
The portfolio — dispersed across Arkansas, Kentucky, Michigan and Minnesota — is fully leased to long-term tenants averaging more than 10 years at the properties. According to a release, those tenants have been in business on average for more than 50 years.
The proceeds of the loan will enable the sponsor to recapitalize the portfolio and buy out existing partners, according to the release.
“Industrial properties have seen sustained growth since well before the pandemic, with the gradual rise of e-commerce contributing to a greater need for high-quality storage and logistics facilities and last-mile delivery solutions,” Toby Cobb, 3650 REIT co-founder and managing partner, said in a prepared remark. “Ideally located industrial assets such as those in the Triple Net and Central States portfolios are poised for continued demand, and we believe they will remain resilient ‘change winners’ through turbulent market conditions as corporate tenants require more space for goods.”
Officials at Alexander Property Holdings did not immediately respond to a request for comment.
Update: This story originally misattributed source material. This has been corrected. We apologize for the error.
Emily Fu can be reached at efu@commercialobserver.com.
