Seagis Refis Industrial Portfolio for $176M
The collection comprises six properties.
Seagis Property Group LP has refinanced a six-property industrial portfolio totaling 1.2 million square feet in Northern New Jersey and South Florida, in the form of a $176 million permanent loan. The eight-year, fixed-rate financing is through Nationwide.
The portfolio is 96 percent occupied, with the four largest tenants comprising 81 percent of the total leasing.
Four of the assets are in infill locations in Northern New Jersey, including sites in Carlstadt, Lyndhurst, Carteret and North Brunswick. The properties each feature 16- to 25-foot clear ceiling heights and a sizable number of loading docks. They have access to Port Newark/Elizabeth, Newark Liberty International Airport, the New Jersey Turnpike and other highway networks.
The two Florida assets are in Doral, a Miami suburb and part of the Airport West submarket. The location offers access to Miami International Airport and Ronald Reagan Turnpike.
READ ALSO: Manufacturing’s Mixed Bag
JLL Capital Markets represented the borrower in the deal. The firm’s Debt Advisory team was led by Senior Managing Directors Jim Cadranell and Gregory Nalbandian, Vice President Michael Lachs and Analyst Kevin Badger.
The deal is similar to a refinancing that Seagis undertook earlier this year, when the company refinanced two fully leased industrial portfolios totaling 1.5 million square feet in the Miami-Dade and Northern New Jersey markets. JLL arranged two loans in that case, totaling $184 million, through a life insurance company.
Industrial fundamentals cool
After years of boom, the U.S. industrial market has cooled, reflecting broader industrial real estate trends. Rent increases are slower, vacancy rates are edging higher and new leasing activity has become more measured, Yardi Matrix reported.
Even so, there are regional variations, with some areas doing better than others, according to Yardi Matrix data. Rental gains remain strongest in high-demand distribution hubs along the East and Southeast corridors, where population growth and infrastructure access support tenant expansion.
At the same time, vacancy reached 9.5 percent nationwide, a level last seen before the pandemic, Yardi Matrix noted. Demand has normalized in recent quarters at the same time as a large volume of projects have been delivered: more than 2.7 billion square feet since 2020.
You must be logged in to post a comment.