LBA Logistics Seals the Deal on $578M CMBS Financing

10501 Cold Storage Rd., a 552,720-square-foot cold storage facility located in Jacksonville, Fla. that LBA bought 2020, according to CommercialEdge information. Photo courtesy of LBA Logistics

LBA Logistics has closed on $577.6 million in single-asset, single-borrower financing for the LBA Logistics Value Fund VII Industrial Portfolio, a collection of 25 industrial properties spanning 10 states. The loan, which covers more than 7 million square feet, was originated by a syndicate comprised of bookrunners Bank of America, Wells Fargo and J.P. Morgan.

A JLL Debt Advisory team headed by executive managing director Kevin MacKenzie, senior managing director Brian Torp and vice president Christopher Pratt arranged the financing, which was priced at 195 basis points over its secured overnight financing range.

According to MacKenzie, it was the lowest pricing for a floating-rate industrial SASB arrangement since March.

The portfolio’s profile

According to reporting from Private Equity Real Estate, Fund VII was first launched in 2019 as the company’s first single-asset investment vehicle dedicated solely to industrial properties. Two years later, Blackstone acquired a 60 percent ownership stake in the fund via a $1.6 billion investment from its Real Estate Income Trust, which gave it a majority stake in two portfolios owned by LBA.

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Properties within Value Fund VII are in markets across California, Florida, Washington, Nevada, Georgia, Utah, Ohio, Kentucky and Tennessee. The facilities are 100 percent occupied rate, and host tenants in the food and beverage, web services and building materials storage sectors. According to JLL, the average population within a 60-minute drive of the properties is 2.9 million.

In addition to the portfolio refinancing, LBA has also undertaken some recent activities in the Salt Lake City area. In April, the firm purchased the last building in Mountain View Industrial Park, a 179,00-square-foot facility.  

SASB Successes

According to Lisa Pendergast, executive director of CREFC, SASB deals remain the largest chunk of CMBS issuances through August, comprising $44 billion of the $69 billion issued this year. For their part, industrial properties remain stable financing endeavors, accounting for the smallest portion of delinquency rate increases in August.

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