Fundrise Refinances 1.1 MSF Industrial Portfolio
Fundrise has refinanced a four-property, 1.1 million-square-foot Southwest industrial portfolio with a $125 million loan provided by Franklin BSP Realty Trust.
The single-tenant industrial warehouse and distribution assets are in the Phoenix, Dallas-Fort Worth and Las Vegas markets. The portfolio is 95 percent leased to three tenants specializing in third-party logistics and support. Fundrise assembled the portfolio in four separate transactions between February 2022 and June 2023.
The refinancing enables Fundrise to continue to expand and strengthen its portfolio in those markets and to grow its industrial footprint, according to the company. A Cushman & Wakefield Equity, Debt & Structured Finance team of Rob Rubano, Brian Share, Max Schafer and Ernesto Sanchez represented Fundrise in the transaction. Will Strong of Cushman & Wakefield’s National Industrial Advisory Group also provided market advisory services.
Portfolio details
The portfolio’s two largest assets, Building E at The Cubes at Glendale in Glendale, Ariz., and 1-215 Interchange in Las Vegas, are newly constructed buildings that were recently acquired as vacant forward-sales and leased up by Fundrise. The other two assets – 8123 South Hardy in Tempe, Ariz., and 4653 Nall Road in Farmers Branch, Texas – have undergone repositioning.
Fundrise acquired Building E, a 570,080-square-foot speculative industrial property, from CRG for $82.6 million in April 2023. The Cubes at Glendale is a 5.5 million-square-foot, 355-acre industrial park in Phoenix’s West Valley submarket. It is about 30 miles from downtown Phoenix, 6.5 miles from I-10 and 30 miles from Phoenix Sky Harbor International Airport. Located at 7421 N. Reems Road, Building E provides access to Loop 303 and the Northern Parkway. The cross-dock warehouse features a 40-foot clear height, 620-foot building depth, 87 dock-high doors and four grade-level doors. The property also includes 132 trailer parking stalls and 356 auto parking stalls. Fundrise signed Saddle Creek Logistics Services as a tenant in October 2023.
The second-largest property in the portfolio is I-215 Interchange, a 400,801-square-foot industrial and distribution building built by Badiee Development in the North Las Vegas Speedway submarket. The project was completed in May 2023 and Fundrise acquired it a month later for approximately $80.2 million. Prior to completion, the Badiee team executed a seven-year lease with a tenant specializing in e-commerce fulfillment for a variety of national clients. The property is located about 15 to 20 minutes from Las Vegas’ largest commerce centers and is adjacent to I-15. The building has a 40-foot clearance height, 69 off-dock trailer stalls and four drive-in truck ramps.
Located in Dallas-Fort Worth’s Platinum Corridor South submarket, 4653 Nall Road in Farmers Branch, Texas, is a 66,060-square-foot co-warehousing Saltbox facility with 101 warehouse suites and 15 office spaces. Built in 1974, it has a 23-foot clear height, one drive-in bay and 14 exterior dock doors. In March 2022, Saltbox and Fundrise’s eFund entered into a financing agreement with Fundrise aiming to invest about $128 million into the creation of new Saltbox locations.
The smallest property in the portfolio is 8123 South Hardy, located in Fundrise Tempe Commerce Park in Tempe, Ariz. Fundrise acquired the property in June 2022 for $11 million. The 56,316-square-foot, two-story building, constructed in 1998, was recently converted from office to industrial space. It has a 29-foot clear height, 394 parking spaces and two grade-level doors. The property is less than 2 miles to the I-10/Elliot Road interchange, less than 15 minutes from Phoenix Sky Harbor International Airport and about 20 minutes from downtown Phoenix.
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