Brookfield to Land $725M CMBS Deal
The funds will be used to refinance a 20-property industrial collection.
Brookfield Asset Management is positioned to secure a $725 million CMBS financing package backed by a 20-property industrial portfolio totaling 3.5 million square feet, according to a KBRA presale report. The transaction is expected to close on Nov. 17.
Morgan Stanley Bank, JPMorgan Chase Bank, City Real Estate Funding Inc. and Santander Bank are co-originators.
The financing package includes a first lien mortgage of $620 million, which has an initial two-year maturity and three one-year extensions, as well as a mezzanine debt of $132 million, the same report shows.
Proceeds will be used to refinance previous debt totaling $607.6 million, to cover closing costs and will also yield nearly $132.1 million in equity.
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Brookfield will close the financing on behalf of its largest real estate fund—Brookfield Strategic Real Estate Partners III—managed by Brookfield Asset Management. Back in 2019, the company closed this investment vehicle at $15 billion, exceeding its initial target.
The 20-property collection is spread across seven states—New Jersey, California, Massachusetts, Florida, Maryland, Texas and New York. North-Central New Jersey and Boston each have four assets in the portfolio. Other markets include the Inland Empire; Los Angeles; New York; Long Island, N.Y.; Miami; Fort Lauderdale, Fla.; Austin, Texas, and Baltimore.
A closer look
Six properties totaling 1.6 million square feet are in New Jersey, making up the largest portion of the portfolio. Four assets are in California, totaling 910,963 square feet, and another four buildings totaling 322,424 square feet are in Massachusetts. Meanwhile, two assets totaling 294,350 square feet are in Maryland, two other encompassing 177,028 square feet are in Florida, a 145,454-square-foot property is in Texas and a 22,500-square-foot building is in New York.
The facilities are primarily warehouse and distribution centers with clear heights ranging from 11 to 36 feet. These facilities were completed between 1960 and 2024, with 67 percent of the buildings completed after 2000. The portfolio was 94.7 percent leased to 22 tenants, including Home Depot, United Packaging Group, B&G Foods Inc. and ABC Supply.
Mortgage originations increased in 2025
Commercial and multifamily mortgage loan originations increased 48 percent quarter-over-quarter through June, a report by the Mortgage Bankers Association shows. Volume also grew 66 percent year-over-year. In line with industrial market trends, originations for this asset type increased 102 percent on a quarterly basis and 53 percent year-over-year.
Among the sector’s recent financing deals was another agreement involving Brookfield. Last month, the company secured a $380 million CMBS package, backed by a 31-property collection totaling 4.5 million square feet.
Blackstone is also set to receive a $1.6 million refinancing package for a 14.7 million-square-foot industrial portfolio that was appraised at $2.5 billion. The funds include a $1.4 billion CMBS loan and a mezzanine note.
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