Seagis Lands $61M Loan for NYC Industrial Portfolio

Seagis New York Portfolio. Image courtesy of Seagis Property Group LP

Seagis Property Group LP has refinanced a fully leased industrial portfolio spanning three boroughs in New York City. With the assistance of JLL Capital Markets, Seagis obtained $60.8 million in financing for the approximately 200,000-square-foot collection of seven properties.

Financing for the light industrial portfolio came in the form of a 10-year, non-recourse, interest-only loan featuring a fixed-rate term. With a JLL Capital Markets Debt Placement team of Gregory Nalbandian, Jim Cadranell, Michael Lachs and Alex Staikos representing the borrower, Chase provided the funding.

The group of properties consists of assets that Seagis acquired in separate transactions between 2018 and 2021 at what JLL describes as “an extremely attractive basis.”

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Three of the assets are in Brooklyn, including the approximately 14,000-square-foot building at 250 Johnson Ave., the 26,000-square-foot warehouse at 124-134 Forrest St. and 132 54th St., a 36,000-square-foot facility.

An additional two properties, the 10,000-square-foot warehouse at 58-17 59th Drive and the 80,000-square-foot facility at 5700 49th Place, are sited in the Maspeth area of Queens. Two assets in the Zerega neighborhood of the Bronx—the 14,000-square-foot property at 1108 Zerega Ave., and the 19,000-square-foot asset at 2500 Waterbury Ave.—complete the portfolio.

No class discrimination among lenders

The buildings in the Seagis portfolio are not state-of-the-art logistics properties; they’re Class B facilities, the majority of which were submitted to a successful value-add program that Seagis implemented soon after acquiring each asset. However, class is not necessarily a key concern for prospective lenders. The fact that the portfolio is 100 percent leased and sited in high-demand, infill locations likely spoke volumes. Regardless, the industrial sector remains a lender favorite across the board.

“Under-exposure by lenders to the sector on a relative basis, combined with concerns regarding other property types (e.g., office, retail and hotel) and robust market fundamentals, have fueled lender appetite for debt secured by core industrial properties,” according to a February 2022 report by Principal Global Investors LLC. “Lenders continue to offer industrial loan interest rates very near those offered for prime multifamily properties, with LTVs commonly up to 65 percent. Lenders are continuing to offer longer interest-only periods for industrial loans than in most other sectors.”