MetLife Real Estate Investors has provided a $38.1m loan to MDH Partners for the acquisition of a multi-property industrial portfolio in North Carolina and Virginia, bringing the total lent to the sponsor this month to more than $100m, Real Estate Capital has learned.
The five-year loan covers 11 buildings totaling 1.35m sq ft. Eight buildings are in Winston-Salem, North Carolina and the remaining three are in Richmond, Virginia.
MetLife has now backed MDH’s purchase of 33 industrial buildings in three US states, having originated an additional $62m loan for the acquisition of a 22-building portfolio in Memphis, Tennessee, as reported last week.
“We love this kind of A-minus, B-plus, value-add opportunity,” said Jeffrey Small, founder of Atlanta, Georgia-based MDH Partners. “We come in, add CAPEX and promote additional leasing and rent increases in order to keep the building functional for the next generation of tenants.”
“You don’t see a lot of institutional capital coming into these smaller markets, but we see positive fundamentals and strong growth, so it made sense for us to establish a presence,” he added.
MDH targets industrial and office value-add opportunities and has acquired properties from Tyco Healthcare, Herman Miller, Stock Building Supply, Staples, Duke Realty, Wells Fargo Bank and Raulet Property Company. The firm has participated in more than $2bn of acquisitions with its capital partners. Small declined to disclose the acquisition prices on the MetLife deals.
Led by Robert Merck, MetLife Real Estate Investors is one of the largest commercial real estate lenders. The business originated approximately $12.1bn globally in commercial real estate loans in 2014, topping 2013’s $11.5bn and setting a company record. Of the $12.1bn total, $8.6bn were US loans. Gary Otten is managing director and head of Real Estate Debt Strategies for the firm.
Arun Singh, an associate director based out of MetLife’s Atlanta, Georgia offices, originated both loans. Colliers International was the broker.