Prudential Mortgage Capital Company has provided a nearly $166m loan to Colony Capital to refinance a 25-property light industrial portfolio with buildings in Atlanta, Dallas, Denver, Houston and Minneapolis.
The 10-year, fixed-rate loan backs 4m sq ft of space that is 97% leased to 69 tenants. The properties are made up mostly of distribution space and the remaining 14 percent is offices.
The Colony Capital Industrial Platform invests in light industrial properties in major metropolitan markets throughout the US. The company has said that it believes smaller distribution buildings (250,000 sq ft or smaller) serve an important role in the supply chain that ‘big box’ warehouses cannot.
Late last year the company paid Cobalt Capital Partners $1.6bn for a 30m sq ft portfolio of 256 primarily light industrial assets across 16 US markets, including Atlanta and Dallas, at the time stating that the now-rapidly-dissolving GE Capital Real Estate would back the acquisition with a loan valued at 70% of the purchase price, or $1.12bn.
Colony, which declined to comment for this article, at the time characterized the Cobalt deal as marking its initiation as a “market leading presence in the light industrial space,” as Thomas Barrack, Jr., executive chairman of Colony, stated at the time.
Prudential’s lines of real estate finance products in the US include originations from the insurance company’s general account; Fannie Mae DUS, Freddie Mac Program Plus and specialized affordable housing programs; FHA; Conduit; a proprietary balance sheet program; and other institutional investors.
Last month, Drew Abernethy of Pricoa Mortgage Capital Company moved stateside as head of Prudential’s commercial real estate finance and portfolio management operations, based out of the firm’s Washington, DC, offices. HFF arranged the loan.