Barings Provides $244M Refi for 6.4M-SF Industrial Park Outside Kansas City
Logistics Park Kansas City opened in 2016 and features 10 buildings across 443 acres
By Brian Pascus July 17, 2024 9:00 am
reprints
A joint venture between Ares Management (ARES) Real Estate Fund and Northpoint Development has secured $244 million to refinance a 10-building warehouse and distribution facility portfolio outside Kansas City, Mo., Commercial Observer has learned.
Barings provided the $244 million loan. No brokers were listed on the transaction.
Stephen Murray, managing director at Barings, said in a statement that the strength of the current industrial market and the long-term partnership between Ares and NorthPoint helped the deal cross the finish line.
“This opportunity is closely aligned with Barings’ real estate debt strategy, focused on investing in high-quality real estate in dynamic markets, backed by experienced sponsorship,” said Murray.
Located at 32880 West 191st Street in Edgerton, Kan. — a city about 30 miles southwest of Downtown Kansas City — Logistics Park Kansas City opened its 10 Class A industrial buildings over several phases between 2014 and 2017. The portfolio spans a total of 6.4 million square feet and features 706 dock doors. Tenants include Amazon (AMZN), Sam's Club and Smart Warehousing.
Logistics Park Kansas City spans 443 acres and features 4,300 container stacking spots and six 8,000-foot strip tracks, and can accommodate up to 1,800 trucks, according to a summary from the University of Wisconsin and MidAmerican Freight Coalition. The park is parallel to Interstate 35 and near a BNSF Railway freight railroad line.
“These assets are uniquely positioned to benefit from Kansas City’s healthy market fundamentals with the strategic location in NorthPoint’s world-class inland port,” Daniel Hedgepeth, director with Barings, said in a statement.
NorthPoint Development sold a majority stake in the development to Ares in 2017.
The financial terms of the deal weren’t disclosed, but the Kansas City Business Journal reported it was estimated that the buildings were valued in the neighborhood of $330 million.
At the time, NorthPoint CEO Nathaniel Hagedorn called it one of the largest commercial real estate deals in Kansas City history.
Since the deal, NorthPoint has continued to operate and manage the logistics complex.
Neither Ares nor NorthPoint responded to requests for comment.
Brian Pascus can be reached at bpascus@commercialobserver.com.
