Brookfield Seals $1.1B Recap for Logistics Portfolio

Brookfield has executed a $1.1 billion recapitalization of its U.S. logistics portfolio, Commercial Observer can first report.

The refinance featured a $752 million commercial mortgage-backed securities (CMBS) loan for its core portfolio and a $309.6 million balance sheet loan for seven transitional industrial properties. 

Brookfield said it projects to reduce the weighted average loan spread by 40 basis points through the recap and extend the portfolio’s average loan term by nearly four years.

“This recapitalization reinforces Brookfield’s disciplined approach to managing our logistics portfolio and the firm’s proactive approach to capital management” Devin Barnwell, managing partner and global head of portfolio management and logistics at Brookfield, said in a statement.  “By optimizing our financing and strengthening liquidity, we’re positioning the business for continued growth and flexibility in a dynamic market.”

The core portfolio in the deal encompasses 20 logistic properties in markets that include Southern California’s Inland Empire, Northern New Jersey, South Florida, and Washington, D.C. The portfolio is roughly 95 percent leased with average terms of five to seven years, according to Brookfield. 

Andrew Coen can be reached at acoen@commercialobserver.com.