Arden Logistics Parks has refinanced 5 multi-tenant industrial parks in three states with a complete of 11 buildings spanning greater than 765,000 sq. toes with a $99.1 million floating-rate mortgage supplied by an Ares Administration Actual Property fund.
JLL Capital Markets organized the refinancing. The group’s Debt Advisory group was led by Managing Administrators Lauren Kaufman and Geoff Goldstein and Senior Director Jillian Mariutti.
The portfolio consists of belongings in prime, high-barrier-to-entry markets in Florida, Illinois and North Carolina. The properties had been acquired in separate transactions from 2023 by 2024. Arden Logistics and JLL didn’t disclose additional particulars together with areas and sizes of the belongings.
Arden Logistics Parks carried out varied capital enhancements and re-leasing methods to extend occupancy and internet working earnings throughout its possession. The portfolio is at the moment 84.4 % leased to a various mixture of tenants in industries corresponding to health-care manufacturing, expertise, automotive {and professional} providers.
Portfolio highlights
The asset assortment consists of multi-tenant shallow-bay buildings and a single-tenant industrial service facility. The buildings have clear heights starting from 14 to 24 toes, a mixture of dock-high and drive-in loading positions and ample parking.
Lots of the belongings are strategically positioned close to transportation hubs, together with worldwide airports and key interstate highways. These areas present tenants wonderful entry for last-mile distribution and regional logistics operations.
The portfolio has a ten.5 % mark-to-market alternative on in-place rents. The JLL Capital Markets group famous that Arden’s value-add technique positions the belongings to proceed to seize lease progress they’re seeing throughout supply-constrained submarkets.
Sustained demand
The commercial sector is seeing sustained demand for infill, last-mile distribution amenities resulting from emptiness charges which can be properly under nationwide averages and restricted new provide within the pipeline. A latest JLL analysis report famous tenant demand for shallow-bay amenities has remained steady over the previous decade, with a median of 250 million sq. toes of recent leases signed every year since 2012. Development exercise for the smaller multi-tenant industrial belongings symbolize about 0.7 % of the full stock beneath building, resulting in the shortage of provide.
Buyers are interested in the shallow-bay infill websites as a result of they ship a diversified tenant combine, cater to a broad array of companies and are extra resilient to market fluctuations. With shorter lease buildings and bigger tenant demand that permits for extra frequent lease changes, shallow-bay belongings additionally supply inflation safety, based on industrial consultants.
Rising portfolio
Philadelphia-based Arden Group launched Arden Logistics Parks in November 2021. The platform targets small- and medium-bay multi-tenant warehouses in city areas. ALP’s present portfolio spans 11 million sq. toes throughout 15 markets together with Atlanta, Boston, Dallas, Houston, Indianapolis, Philadelphia, Chicago, Charlotte, N.C., and Tampa, Fla.
In December 2023, ALP acquired a 34,700-square-foot industrial service facility and industrial out of doors storage asset in Addison, In poor health., leased to UPS by an off-market transaction. The vendor had accomplished a capital enchancment plan on the 3.61-acre web site within the Chicago industrial market previous to the sale and secured the tenant.
Additionally in December 2023, ALP employed Stream Realty Companions because the unique leasing agent for North Park 34, an 865,000-square-foot industrial park in Houston. ALP had acquired the 34-building portfolio in November 2021 for slightly below $80 million and carried out a capital enchancment program, which led to 436,000 sq. toes of recent leasing.
Different actions in 2023 included the acquisition of a three-building, 195,532-square-foot portfolio of shallow-bay industrial belongings with greater than 40 tenants that marked the agency’s entry into the West Palm Seaside, Fla., market, and acquisition of Northbridge Enterprise Middle in Charlotte. The four-building, 174,000-square-foot flex industrial portfolio has 4 belongings starting from 22,655 sq. toes to 65,382 sq. toes.
