Preylock Secures $581M CMBS Loan for Industrial Portfolio Buy

Preylock Real Estate Holdings has secured a $581M floating-rate, interest-only loan from Goldman Sachs to finance its 1.3B acquisition of a portfolio of eight recently built-to-suit warehouses that are leased by Amazon.   

Last fall, Preylock and Bahrain-based GFH Financial Group announced the acquisition of 19 warehouses—all leased by Amazon—encompassing 11M SF in 15 states in a deal estimated to be worth a total of $3B.

According to a report from Moody’s, the CMBS loan represents a consolidation of several loans Goldman Sachs issued to Preylock between August 2021 and March 2022.

The CMBS loan is scheduled to expire next year, but Preylock has the option of extending the maturity through 2024. The loan caps the interest rate at 3%, requiring monthly payments of approximately $726K.

The properties covered Goldman Sachs’ financing includes warehouses built in 2020 and 2021 encompassing more than 6M SF and located in Indiana, Pennsylvania, Ohio, Louisiana, North Dakota, New Mexico, Arkansas and Alabama.

The largest property in the deal is a 3M SF Amazon fulfillment center in Albuquerque that opened last year. Amazon has signed long-term leases of at least 10 years on all of the industrial facilities covered by the CMBS loan.

In a release last fall regarding the portfolio, GFH said the warehouses were all built to suit Amazon’s requirements and are strategically located near major ports and critical infrastructure, minimizing inbound transportation expenses.

Launched in 2016, Century City-based Preylock currently has more than $4B in AUM encompassing 13MSF of industrial and office space.

The firm’s portfolio includes a 114K SF Class A office building in Los Gatos, CA that is leased to Netflix as a headquarters, and a six-building, 422K SF Class A office campus in Redmond, WA that is anchored by Meta, the parent of Facebook.

Preylock’s industrial portfolio includes an 855K SF fulfillment center leased by Amazon in Las Vegas.

GFH, previously known as Gulf Finance House, racked up a series of high-profile mega deals in the US last year. In addition to the portfolio of warehouses leased to Amazon, the Bahrain investment bank acquired a $730M portfolio of built-to-suit facilities leased to FedEx and General Mills.

GFH also acquired a $137M warehouse in Illinois leased to tire maker Michelin and a $100M warehouse in Ohio leased to FedEx.

The Bahrain-based firm also has acquired a significant footprint in the MOB sector with its purchase of 11 medical office buildings across seven states in a transaction valued at $440M.