3650 REIT, JP Morgan Chase Provide $62M Refi on Columbus Warehouse
The sponsors are repeat borrowers of 3650 REIT and JP Morgan Chase
By Brian Pascus May 20, 2024 3:43 pm
reprints
Cleveland-based Industrial Commercial Properties and Industrial Realty Group of California have secured $62 million to refinance Columbus Business Park, an industrial complex that spans more than 3.9 million square feet over 153 acres in Columbus, Ohio, Commercial Observer has learned.
3650 REIT together with J.P. Morgan Chase provided the financing, a five-year loan.
Both Industrial Commercial Property (ICP) and Industrial Realty Group (IRG) are repeat borrowers of 3650 REIT and J.P. Morgan Chase, having secured $180 million from the two lenders in April 2023 to refinance a six-property portfolio of industrial assets in Ohio and Michigan that altogether span 7 million square feet.
3650 REIT co-founder and Managing Partner Toby Cobb told CO his firm’s “constructive management with repeat borrowers” like ICP and IRG was the key to securing another deal for this lending partnership.
“We’ve already had a constructive servicer relationship with them, and they are coming back for another loan, and coming back to the same partnership with J.P. Morgan Chase,” said Cobb. “The relationship [with the sponsor] goes back a long way.”
Cobb praised the connection his firm has developed with J.P.Morgan Chase over the years, and he noted that the borrower always makes the call on which lender it prefers to hold the senior control piece of a joint loan – in this case it’s 3650 REIT – to ensure a constructive servicing relationship over the loan’s term.
“J.P. Morgan and we have worked very well together. We think they’re an extraordinarily capable bank and probably the single best capitalized bank in the world today,” said Cobb. “We have no issue working with them at any time.”
Located at 4545 Fisher Road in Columbus, Columbus Business Park is a warehouse and distribution center with 225 dock doors, seven drive-in doors, and 35-foot clear heights. The warehouse sits less than a mile from Interstate 270 and Interstate 70.
Cobb called industrial properties “among the most favored, if not the most favored” asset class on the planet today and praised the bones of Columbus Business Park.
“The asset has superior sponsorship and it’s well leased and stabilized,” he said. “It’s truly a distribution facility with right dock height and doors and ceiling lights to accommodate major distributions and that’s the most dear to us.”
Brian Pascus can be reached at bpascus@commercialobserver.com
