JP Morgan Leads $578M Package for 10-State Industrial Portfolio

The owner of a massive, fully leased industrial portfolio spanning 10 states has just secured an equally extensive financing package for the properties. 

Irvine, Calif.-based LBA Logistics, through its Value Fund VII, owns the 25-property portfolio, which totals more than 7 million square feet. JLL Capital Markets’ Kevin MacKenzie, Brian Torp and Christopher Pratt arranged the $577.6 million floating-rate, five-year commercial mortgage-backed securities package via J.P Morgan, Bank of America (BAC) and Wells Fargo (WFC). 

The portfolio assets, which are 100 percent occupied, are in California, Florida, Georgia, Kentucky, Nevada, New Jersey, Ohio, Tennessee, Utah and Washington state. 

“This is the lowest pricing for a floating-rate industrial [single-asset, single-borrower loan] since March, which is a testament to the strength of the sponsor, portfolio and strategy,” MacKenzie said in a statement. “Being patient throughout the process and timing the marketing properly led to being significantly oversubscribed, with spreads tightening across the capital stack, demonstrating the current demand in the market.”

While the scale of LBA’s portfolio and its new debt is mind-numbing, it still pales in comparison to Blackstone’s 100-industrial-property, $2.35 billion financing package that the ubiquitous alternative investment management firm secured earlier this year. Blackstone’s portfolio spans 11 states, with the debt coming from the likes of Wells Fargo, Barclays, Citibank and Bank of Montreal. 

Nick Trombola can be reached at ntrombola@commercialobserver.com.