MDH Partners Lands $196M Everest Loan for 1.6M SF Warehouse Portfolio Acquisition
MDH Partners has secured an Everest Loan, totaling $195.9 million. The move backs its recent buy of a warehouse portfolio that spans 1.6 million square feet.
Capital One provided the financing, with its Senior Vice President and Southeastern Market Manager, Mary Lucy Lester, originating it. Matthew Ludwig, head of debt capital markets, represented MDH.
The portfolio consists of seven buildings, located in several markets across the country, including Nashville, Salt Lake City, Dallas-Fort Worth and the Inland Empire West. The properties are 91 percent leased.
The acquisition and financing comes after MDH struck a $946.8 million deal to refinance a portfolio, known as Fund II. Both ACORE Capital and Wells Fargo were involved with the deal. And over the past six months alone, MDH said it has completed more than $559 million in deals involving properties, with an additional $160 million now under contract.
Plus, MDH has Fund III, which is investing in development and purchasing opportunities in the industrial sector. The discretionary fund has $1.2 billion in equity and allows for $3 billion in buying power.
"We are proud to continue our partnership with MDH Partners and support their investment strategy for Fund III," said Lester.
"The Everest Loan reflects Capital One's continued commitment to providing efficient capital to top-tier sponsors like MDH, especially for high-quality, institutionally-leased industrial portfolios. We look forward to seeing the success of this acquisition and our ongoing collaboration."
Meanwhile, industrial faces its challenges going forward as the Dallas Fed's March Texas Manufacturing Outlook Survey foundthat the production index dropped from 12.8 to 6.8, signaling below-average growth, as economic uncertainty lingers in decision-making. This for industrial will likely affect leasing decisions, underwriting assumptions and the timing of tenant growth plans, according to Trepp.
Going forward, MDH noted it will continue assessing the risk in the industrial sector while continuing to explore opportunities. The Atlanta-based firm, which is mainly focused on industrial and logistics, manages a portfolio spanning roughly 38.5 million square feet across 19 states and 33 markets.
Source: GlobeSt/ALM