Ares Gets $475M for 4.8 MSF Portfolio
An Ares Management Real Estate fund has obtained a $475 million CMBS loan backed by a 4.8 million-square-foot, 25-building industrial portfolio spanning 12 states. Cushman & Wakefield arranged the floating-rate, single-borrower financing provided by a syndicate led by J.P. Morgan, with Morgan Stanley and Natixis Corporate & Investment Banking as joint bookrunners.
Ares Industrial Management is the portfolio manager. The buildings, located in 16 key growth markets, were 97 percent leased at the time of closing.
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The portfolio includes a mix of Class A and B bulk warehouses and light industrial properties. The most notable assets are two facilities in the San Francisco Bay Area totaling 518,300 square feet, three buildings in Southern California spanning 344,700 square feet and five properties in Houston totaling 693,900 square feet.
A 722,500-square-foot facility in Reno and a 797,600-square-foot Atlanta property are also part of the mix. The rest of the warehouses are spread out across several major markets including Salt Lake City, Phoenix, Denver, Orlando, Fla., Jersey City, N.J., Portland, Ore., Indianapolis, Chicago, and Las Vegas.
The facilities have an average age of 2005, 30-foot clear heights and an average of 5 percent of office space.
The Cushman & Wakefield Equity, Debt and Structured Finance team comprised Vice Chairs Rob Rubano and Gideon Gil, Executive Managing Director Brian Share and Managing Director Joe Lieske, along with Vice President Ernesto Sanchez and Associate Lars Weston.
Ares’ other financing deals
Ares Management Real Estate had approximately $51.5 billion of assets under management as of June 30, 2024. In July, a joint venture between one of its funds and NorthPoint Development obtained $244 million in refinancing for a 6.4 million-square-foot portfolio in Logistics Park Kansas City in Edgerton, Kan. The 10 properties came online between 2014 and 2017.
And, in February, an Ares Management real estate fund received a $150 million loan for a 1.8 million-square-foot, six-property industrial portfolio. The Class A properties were 40.9 percent leased at the time of closing, with letters of intent out on most of the vacant space.
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