Affiliates of Apollo are providing $252.5 million in financing for an industrial portfolio that spans 3.64 million square feet in total. While the borrower was not listed, JLL arranged the loan, which carries a floating rate and a five-year term.
The 21 light industrial assets, described as "mission critical," are located in 17 markets through 13 states, which include the Central, Southeast, West and East regions. According to JLL, the Lower Terra Industrial Portfolio dubbed portfolio, is 98 percent leased to 16 tenants.
What stands out about the portfolio is the positioning, as all of the assets provide access to workforce markets, which altogether account for 18 percent of the total national labor market. Also, the properties are exposed to manufacturing. A report from JLL found that in the first quarter, leasing in the sector was up by 17.4 percent from the previous three months.
"This portfolio represented an exceptional opportunity to finance well-maintained, mission-critical industrial facilities with an institutional sponsorship group that brings unrivalled sector expertise," Lucas Borges, senior director of JLL, said in a statement.
"The combination of the portfolio's geographic diversity, long-term tenant base and strategic positioning in markets with strong industrial fundamentals made this an attractive investment opportunity in today's capital markets environment."
As for industrial as a whole, smaller markets are expected to outperform in terms of rent growth through 2029 in the asset class, according to a report from CBRE. This can be attributed to construction not surging compared to other markets. The top 15 projected rent growth regions are expected to increase by 5%, while the bottom 15 are expected to see gains of less than 2%, CBRE predicted.
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