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LAS VEGAS-Allstate Real Estate Investment Group recently provided an $80-million loan to ProLogis North American Industrial Fund III. The collateral for the Allstate loan is a package of 13 newer warehouse and distribution buildings totaling 3.8 million sf and located in the Nevada cities of Reno and Las Vegas, and Harrisburg, PA.

The collateral was part of the 24.7 million-sf portfolio that ProLogis North American Industrial Fund III acquired from a joint venture of Dermody properties and CalSTRS last year for $1.8 billion. Dave Kocourek, co-head of production for Allstate REIG’s commercial mortgage division tells GlobeSt.com that Allstate REIG in 2004 funded a 10-year $80-million loan using the same collateral.

That previous loan was assumed by the fund when it acquired the larger portfolio, he says, and the new loan was made co-terminus with the previous loan. The interest rate on the new loan, which he declined to pinpoint, was based on the interpolated six-year treasury.

“There is now $163 million of debt on that portfolio right now,” Kocourek says. “We feel the loan-to-value ratio is around 65%.”

That is about the maximum leverage Allstate REIG will provide, he says. “Everybody has been pulling back; the standard deal no is 60- to 65% leverage,” he says.

ProLogis received the loan because it is a known quantity—it is one of Allstate’s largest mortgage borrowers—and because it’s considered a high-credit borrower, Kocourek says.

“We’re being very selective,” he says. “We are focusing on relationships we have [with] highly regarded clients.”

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