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6.4 MSF Kansas City Industrial Portfolio Lands $244M Refi

4 months ago

Barings provided the loan for the 10-property warehouse and distribution portfolio. The post 6.4 MSF Kansas City Industrial Portfolio Lands $244M Refi appeared first on Commercial Property Executive.

A joint venture between an Ares Management Real Estate fund and NorthPoint Development has refinanced a 10-property warehouse and distribution portfolio totaling 6.4 million square feet in Logistics Park Kansas City in Edgerton, Kan. Barings provided the $244 million loan.

The 10-asset portfolio is owned by Ares Management Real Estate and NorthPoint Development and is part of Logistics Park Kansas City in Edgerton, Kan. Image courtesy of NorthPoint Development

Developed between 2014 and 2017, the buildings are located within the 1,700-acre master-planned industrial park and inland port developed jointly by NorthPoint Development and BNSF Railway. The properties offer immediate access to BNSF Railway’s state-of-the-art intermodal rail facility. Located along the railway’s Transcontinental Corridor, LPKC opened in 2013. It has a total building capacity of 17 million square feet.

In 2017, NorthPoint sold a majority stake in the portfolio to Ares Management Real Estate, a global alternative investment manager with nearly $50 billion in assets under management as of March. NorthPoint retained a minority stake as part of the joint venture and also continued to operate and maintain the buildings.

The portfolio is currently 93 percent leased to a variety of premier tenants including Amazon, Stanley Black & Decker, Sam’s Club, Assa Abloy and Smart Warehousing. The buildings feature concrete tilt-panel construction with an average 35-foot clear height and 706 dock doors.

Amazon agreed to lease an 822,104-square-foot building at LPKC in March 2016 for a fulfillment center expected to create about 1,000 jobs. At the time, it was the largest speculative industrial building ever constructed in the Kansas City, Mo., market.

Barings Transactions

Steve Murray, a Barings managing director, said in a prepared statement the refinancing transaction is closely aligned with the asset management firm’s real estate debt strategy that is focused on investing in high-quality assets in dynamic markets and backed by experienced sponsors. The company’s real estate debt platform is now more than $28.4 billion.

Also this month, Barings provided a $102 million five-year construction loan alongside $63.3 million in green financing from Counterpointe Sustainable Real Estate to help redevelop downtown Darien, Conn.’s Corbin District. Phase II will feature 11 new buildings including a mix of apartments along with office and retail space.

Last year, Barings purchased Warner Commerce Center, a newly built speculative 197,000-square-foot industrial property in Tempe, Ariz., from The Opus Group for $42.4 million.

The post 6.4 MSF Kansas City Industrial Portfolio Lands $244M Refi appeared first on Commercial Property Executive.