Benefit Street Partners Lends $100M on Dallas-Area Industrial Asset
By Andrew Coen October 25, 2024 1:56 pm
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A joint venture between Grandview Partners and TRG Development has secured $99.8 million of takeout construction financing for a newly built industrial park in suburban Dallas, Commercial Observer can first report.
Benefit Street Partners provided the loan on the sponsorship’s Core45 1.64 million-square-foot development in Wilmer, Texas that was completed this past summer. The deal takes out previous construction debt on the property acquired in December 2021 at more favorable terms.
“The Core45 development exemplifies the type of high-quality, strategically located assets we seek to finance,” Brian Buffone, managing director at Benefit Street Partners, said in a statement.
Located at 1690-1700 East Pleasant Run Road less than a mile from the Union Pacific Intermodal Dallas Terminal, Core45 consists of two industrial, manufacturing and distribution buildings within the Interstate 45 corridor roughly 20 miles southeast of Downtown Dallas. The property is 18 percent pre-leased to Owens Corning, an Ohio-based company that provides roofing, insulation and composite materials.
Cushman & Wakefield (CWK) arranged the transaction with a team led by Rob Rubano, Brian Share, Michael Zelin, Max Schafer, Billy Coyle and Nikola Kretschmann. The brokerage firm’s industrial advisory group also assisted with a team that included Jim Carpenter, Jud Clements, Robby Rieke and Trevor Berry.
“Bridge lenders have no shortage of new construction lease-up industrial deals to choose from, so we were extremely pleased with the depth of bids and competitive quote terms we received here,” Share, executive managing director at C&W, said in a statement. “Lenders recognized that the Grandview and TRG teams built a great product with flexibility to appeal to a range of tenant types and sizes and invested in upgraded features and spec work that should help the property out position the competition.”
Rieke noted in a statement that the South Dallas industrial submarket has “some of the strongest tenant demand and net absorption” in the Dallas-Fort Worth region despite elevated supply in recent years. He added that demand is picking up due to ”emerging barriers to entry” in the South Dallas area spurred by increased interest from data center users purchasing vacant land.
Officials at Grandview Partners and TRG Development did not immediately return requests for comment.
Andrew Coen can be reached at acoen@commercialobserver.com
