{"id":1004660383,"date":"2023-05-03T04:13:08","date_gmt":"2023-05-03T12:13:08","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004660383"},"modified":"2023-05-03T06:56:33","modified_gmt":"2023-05-03T14:56:33","slug":"innovo-completes-125m-recapitalization-of-detroit-industrial-campus","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/innovo-completes-125m-recapitalization-of-detroit-industrial-campus\/","title":{"rendered":"Innovo Completes $125M Recapitalization of Detroit Industrial Campus"},"content":{"rendered":"
\"Gateway<\/a>

Gateway Industrial Center. Image courtesy of JLL<\/em><\/p><\/div>\n

Innovo Development Group<\/strong> has completed the $125 million recapitalization of Gateway Industrial Center, a 1.4 million-square-foot industrial campus in Detroit.<\/p>\n

Most recently, JLL Capital Markets<\/strong> represented Innovo in arranging $10 million in joint venture equity financing through the RealtyMogul<\/strong> crowdfunding platform. In June 2021, JLL arranged an $80 million financing package which included a $63.7 million loan from Mack Real Estate Group<\/strong>, set to mature in 2031, according to Wayne County records.<\/p>\n

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READ ALSO:<\/strong> Scarcer Debt for CRE Under Scrutiny<\/a><\/p>\n

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JLL Senior Director Stephen Van Leer, Managing Director Ed Halaburt, Managing Director Trent Niederberger and Director Ross Bratcher orchestrated the recapitalization process.<\/p>\n

The story of a Detroit industrial campus<\/h2>\n

Innovo purchased the asset in 2020 for $36.2 million from DMS<\/strong>. The transaction was financed with a bridge loan of $25.4 million, provided by Franklin BSP Realty Trust<\/strong>, CommercialEdge data shows. Originally completed in 1948 as a manufacturing facility for Massey Ferguson, the 69-acre property underwent several transformations throughout the years.<\/p>\n

In 2021, Innovo started a capital redevelopment process at Gateway Industrial Center, which included the demolition of obsolete buildings and updating the existing facilities.\u00a0Following the revamp, the campus comprised two facilities totaling 1 million square feet, with 40-foot maximum clear heights and ESFR fire sprinklers, and included 745 car parking spaces.<\/p>\n

The following year, Innovo started construction on a 421,000-square-foot speculative development at the property. The recently completed warehouse features 36-foot clear heights, 50- by 50-foot column spacing, LED lighting and offers 317 car parking spaces and parking for 100 trailers.<\/p>\n

The campus, located in an Opportunity Zone at 12601 Southfield Freeway, is 14 miles from downtown Detroit and close to Interstate 96. Its tenant roster includes Houghton International Inc., NTS and Detroit Manufacturing Systems. Senior Vice President Sean Cavanaugh with JLL is handling leasing at the property.<\/p>\n

As of March, Detroit\u2019s industrial market registered a 3.7 percent vacancy rate, 20 basis points lower than the national average of 3.9 percent, according to the latest CommercialEdge report<\/a>. Its supply pipeline consisted of 10.3 million square feet, representing 1.9 percent of stock.<\/p>\n","protected":false},"excerpt":{"rendered":"

A JLL Capital Markets team secured the multi-source financing for the borrower.<\/p>\n","protected":false},"author":2829,"featured_media":1004660534,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1495,21808,21825,21748,13,21742],"tags":[36351,51052,32796,44285],"class_list":["post-1004660383","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-detroit","category-featured","category-finance","category-industrial","category-midwest","category-latest","tag-capital-improvement","tag-innovo-property-group","tag-jll","tag-mack-real-estate-group"],"acf":[],"yoast_head":"\nInnovo Completes $125M Recapitalization of Detroit Industrial Campus - Commercial Property Executive<\/title>\n<meta name=\"description\" content=\"Innovo Development Group completed the $125 million recapitalization of Gateway Industrial Center, a 1.4 million-square-foot asset in Detroit.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/innovo-completes-125m-recapitalization-of-detroit-industrial-campus\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Innovo Completes $125M Recapitalization of Detroit Industrial Campus\" \/>\n<meta property=\"og:description\" content=\"Innovo Development Group completed the $125 million recapitalization of Gateway Industrial Center, a 1.4 million-square-foot asset in Detroit.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/innovo-completes-125m-recapitalization-of-detroit-industrial-campus\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2023-05-03T12:13:08+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-05-03T14:56:33+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/05\/Gateway-Industrial-Center-e1683125755701.png\" \/>\n\t<meta property=\"og:image:width\" content=\"732\" \/>\n\t<meta property=\"og:image:height\" content=\"549\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Madalina Pojoga\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/innovo-completes-125m-recapitalization-of-detroit-industrial-campus\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/innovo-completes-125m-recapitalization-of-detroit-industrial-campus\/\",\"name\":\"Innovo Completes $125M Recapitalization of Detroit Industrial Campus - 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