Newmark has arranged a $240 million joint venture between sponsor Burton Katzman and DRA Advisors for the recapitalization of 24 infill light industrial properties in the Midwest.
The 24-property industrial portfolio spans more than 2.2 million square feet, is 99 percent leased with a five-year weighted average lease term (WALT) and features a diversified national tenant roster. With more than 40 tenants on the rent roll, no tenant occupies more than 15 percent of the portfolio’s square footage, mitigating rollover risk. Newmark also arranged the financing for this transaction.
The venture will target value-add returns by acquiring industrial assets across the Midwest where rents are below market. DRA Advisors and Burton Katzam can create value through strategic leasing via their relationships in the automotive industry. Sponsorship will be developing and expanding the space of several assets in the seed portfolio.
“With a diversified rent roll and strong WA
