Burton Katzman and DRA Advisors have formed a $240 million joint venture that will launch with the recapitalization of 24 infill light industrial properties in the Midwest.
“The portfolio represents a highly compelling opportunity to acquire a dynamic, well-occupied, and cash-flowing light industrial portfolio at an attractive basis with a best-in-class joint venture partner,” Brett Gottlieb, managing director for DRA Advisors, says in prepared comments.
The portfolio spans over 2.2 million square feet, is 99% leased with a five-year weighted average lease term and features a diversified national tenant roster. With over 40 tenants on the rent roll, no tenant occupies more than 15% of the portfolio’s square footage, mitigating rollover risk. Newmark arranged the financing for this transaction as well as the joint venture.
The JV will target industrial assets across the Midwest where rents are below market. In addition the JV will develop and expand the space of several assets in the seed portfolio.
The Newmark team was led by Vice-Chairmen and Co-Heads of Debt & Structured Finance Jordan Roeschlaub and Dustin Stolly, along with Director Eden Abraham. Executive Managing Director Daniel Canvasser from the Detroit office provided regional support on the transaction.
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