Ares Management Real Estate Secures $475M in CMBS Financing for Industrial Portfolio
J.P. Morgan, Morgan Stanley and Natixis Corporate & Investment Banking provided the floating rate, SASB loan
By Brian Pascus October 21, 2024 4:24 pm
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An Ares Management Real Estate fund has secured $475 million in commercial mortgage-backed securities (CMBS) financing for a 25-building industrial portfolio across 12 states, Commercial Observer can first report.
J.P. Morgan, together with Morgan Stanley (MS) and Natixis Corporate & Investment Banking, led the lending syndicate that provided the floating-rate, single-asset, single-borrower (SASB) CMBS financing. Cushman & Wakefield’s equity, debt and structured finance team of Rob Rubano, Gideon Gil, Brian Share, Joe Lieske, Ernesto Sanchez and Lars Weston arranged the deal.
C&W’s Rubano said in a statement that the financing is secured by a “high-quality collateral” portfolio that features 58 tenants on the rent roll and that spans 25 buildings and more than 4.8 million square feet.
“The flexible, floating-rate financing provides a competitive mix of economic and non-economic terms to maintain optionality,” said Rubano. “We’re excited to be a part of another successful financing for Ares.”
Sixteen of the industrial assets were built since 2000, 12 of which were built within the last ten years.
All of the assets are either Class A and B bulk warehouse or light industrial assets, according to C&W. Notable properties within the portfolio include a 797,600-square-foot freestanding property in Atlanta, a 722,500-square-foot property in Reno, and five properties in California. Other properties are located in Salt Lake City, Phoenix, Houston, Denver, Orlando, Jersey City, Indianapolis, Chicago, Las Vegas, and Portland, Ore., according to Cushman.
Ares Management is currently leasing the portfolio at 97 percent.
Brian Pascus can be reached at bpascus@commercialobserver.com
