Protective Life, Old National Bank, One America Lend $150M on Industrial Portfolio

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A joint venture between Burton-Katzman and DRA Advisors has sealed $150 million of acquisition financing for its purchase of 24 infill light industrial properties in the Midwest, Commercial Observer can first report.

Protective Life, Old National Bank and One America originated the loans for the JV to acquire the portfolio, which spans 2.2 million square feet.

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“The portfolio represents a highly compelling opportunity to acquire a dynamic, well-occupied and cash-flowing light industrial portfolio at an attractive basis with a best-in-class joint venture partner,” Brett Gottlieb, managing director for DRA Advisors, said in a statement.   

Newmark (NMRK) arranged the financing with a team led by Jordan Roeschlaub, Dustin Stolly and Chris Kramer. The brokerage also facilitated the JV for the deal, which is slated to be the first of many under the newly formed partnership targeting Midwest value-add industrial opportunities.

The 24 properties are currently 99 percent leased with a five-year weighted average lease term (WALT). There are more than 40 tenants on the rent roll, and no user occupies more than 15 percent of the portfolio’s square footage. 

“Investment in industrial real estate by institutional owners remains a top-choice asset class for investors, especially those in secondary and tertiary markets that still offer growth potential,” Stolly said in a statement. 

Much of the portfolio is centered around the Detroit metropolitan statistical area, which Newmark says has near all-time lows for industrial vacancies and has generated double-digit rent growth year-over-year post-pandemic. 

Andrew Coen can be reached at acoen@commercilobserver.com