DALLAS-CBRE Capital Markets has arranged the financing, and acted as the equity placement advisor, for a large industrial portfolio with assets located in Dallas, Houston, San Antonio and Atlanta. CBRE represented a joint venture partnership formed between Sealy & Company and AEW Capital Management to recapitalize the portfolio and obtain a $52.2 million loan through J.P. Morgan. The five-year, floating-rate financing is interest-only for the entire loan term. AEW owns the portfolio on behalf of AEW Partners VII, L.P., an opportunistic real estate fund.

The portfolio consists of nine properties located in four of the fastest growing industrial markets in the U.S.: Dallas (5), Houston (2), San Antonio (1) and Atlanta (1). The nine properties contain 20 multi-tenant industrial buildings totaling approximately 1.9 million square feet. At the time of closing, the portfolio was 90% leased to 62 tenants with a balanced expiration schedule.

“Given the institutional sponsorship, stability of cash flow and market diversity of the portfolio, the deal garnered a solid amount of attention from the lending community,” said Scott Lewis with CBRE's Dallas office.

The Dallas portion of the portfolio is comprised of 16 buildings located in the South Stemmons and Northwest Dallas submarkets. The Houston portion consists of two buildings located in the Northwest Houston submarket; and San Antonio consists of one building located in the North Central submarket.  The McDonough, Georgia asset is the largest building in the portfolio and is located in the South Atlanta industrial submarket. 

Lewis along with Matt Ballard and Patrick Benoist of CBRE's Debt & Structured Finance group originated and secured the financing for the transaction on behalf of the borrower.  The team of Jack Fraker, Josh McArtor, Jonathan Bryan, and Heather McClain Venegoni with CBRE's Institutional Group worked as the equity placement advisor.