Basis Industrial Acquires Four Warehouses, Refinances Two for $220M
Basis Industrial, a Boca Raton, Fla.-based owner and operator of self-storage and warehouse properties, has purchased four commercial properties in Texas and Florida for $160 million and completed the refinancing of two of its existing Florida warehouses for $60 million, the firm announced.
The transactions included the $25 million purchase of Winter Garden Business Park in Winter Garden, Fla.; the $49.6 million purchase of North Lake Business Park in Altamonte Springs, Fla.; and the $81 million acquisition of two adjacent industrial parks in Fort Worth, Texas.
Westminster Capital and Taurus Investment Holdings were the respective sellers of the Winter Garden and Altamonte properties in central Florida, while the Texas sellers were LanCarte Commercial Real Estate and PHP Capital.
As part of the transaction that closed Nov. 30, Basis also refinanced the Crystal Pointe industrial and office complex in Deerfield Beach in South Florida, which it acquired for $22 million earlier this year. It also refinanced its Gateway and Commerce Point property in Orlando, Fla.
Bank United, Banesco USA and Thorofare Capital provided $105 million in loan proceeds for the transactions. Beach Point Capital Management provided a preferred equity and mezzanine loan of roughly $70 million, with Basis and NexPoint funding the rest of the purchase. Spokespeople for the lenders didn’t immediately return requests for comment.
All told, the $220 million in transactions encompassed six industrial and commercial properties totaling 1.3 million square feet.
Anthony Scavo, the president of Basis, represented the company in-house for all four acquisitions. Ron Rogg of CBRE represented Westminster Capital, and Robbie McEwan and Cody Brais of JLL represented Taurus Investment. Stephen Bailey and Zach Riebe of Newmark represented LanCarte and PHP. The brokers didn’t immediately return requests for comment.
The capital stack included some creativity, Scavo said: “Beach Point Capital Management provided a hybrid mezzanine debt solution with no minimum payment and equity participation. The all-in rate is confidential, but this hybrid structure worked well for this transaction.”
Additionally, “NexPoint’s preferred equity position in Deerfield and Gateway was refinanced out with the new mezzanine funds brought in by Beach Point,” Scavo said. “Those preferred equity dollars were then used as sponsor equity to purchase the four new additional sponsor assets. Basis increased their existing sponsor equity positions in Deerfield and Gateway, and NexPoint contributed 20 percent of the cap stack of the four new acquisitions. The sponsors collectively contributed approximately 21 percent of the capital stack.”
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