H&R REIT Secures $61M Refi on Three-State Industrial Portfolio

TAMPA, FL—H&R REIT has won the confidence of investors with an industrial portfolio spanning three states and two million square feet. The three-building portfolio is fully leased to Nestle USA.

CBRE Capital Markets arranged the loan refinance. CBRE senior vice president Michael Strober, along with partners, Amanda Valenti and Donald Jennewein, secured financing with 10-year term, 10-year amortization and a 4.5% interest rate through ING Investment Management.

“The challenge was not so much that it was a portfolio in three different locations, but that the buildings had just gone into their option period," Strober tells GlobeSt.com. "We had shorter maturities on large distribution centers with a single tenant and an average of five to seven years left on the leases. If they were multitenant buildings you would have an easier job.”

The largest of the three buildings is an 860,939-square-foot industrial office/warehouse facility in Dekalb, Ill. The second largest is a 782,565-square-foot cross dock distribution warehouse in McDonough, Ga. The third facility is a 524,252-square-foot industrial building located in Fort Worth, Texas. All three industrial facilities are class A.

“The life companies are all flush with cash,” Strober says. “Most life companies are in the mode to get at least $1 billion out the door out the door for 2012 with a number one priority of multifamily. I must say that the industrial corridor throughout the United States has taken a second position. Industrial has become the fair haired child right now for life companies.”

This transaction marks $311 million in loan originations for the CBRE Capital Markets team in Tampa as of first quarter 2012. Last week, CBRE announced a $250 million loan financing transaction on behalf of H&R REIT for its acquisition of Hess Tower in Texas. Strober was joined by CBRE Capital Markets professionals in Dallas and Houston to arrange the financing for Hess Tower.