Dune JV Lands $500M Refi

A joint venture between affiliates of Dune Real Estate Partners LP and the Robert Martin Co. has received $500 million in financing for their Westchester Industrial Portfolio, an assemblage of 42 properties totaling about 2.4 million square feet across three industrial parks in Westchester County, N.Y.

JLL Capital Markets arranged the funding through Starwood Property Trust.

The portfolio is described as being “in irreplaceable, infill locations” that benefit from substantial barriers to entry, limited new supply and excellent access to major New York transportation infrastructure, including I-287 and I-87, Route 9A and the Saw Mill and Sprain Brook Parkways.

The JLL Capital Markets team was led by Senior Managing Directors Peter Rotchford, Christopher Peck and Andrew Scandalios; Managing Director Tyler Peck; and Director Christopher Pratt.

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Rotchford noted that the sponsors are carrying out a value-creation strategy, following a recapitalization of the portfolio in December 2021.

Mixed submarket performance

The industrial space market in Westchester County has widely varying vacancies, from barely 2 percent in the Northeast submarket to about 9 percent in the Southeast submarket, according to a second-quarter report from Lincoln Property Co. The countywide average availability is 5.75 percent, on an inventory of about 39.3 million square feet.

In February, Dune Real Estate Partners and Kearny Real Estate Co. completed a 163,000-square-foot Class A industrial facility in Santa Ana, Calif. Harbor Logistics Center was developed on the site of a former 200,000-square-foot office campus, which had been demolished nine months earlier. TDA Investment Group had provided a $50 million construction loan for this project.

Also on the West Coast, Dune is well underway with Four 106, a 484,700-square-foot office building in Bellevue, Wash. The Blackstone Group provided a $270.5 million construction loan for the project.