MDH Partners has secured $69.3 million first-mortgage financing from Truist Bank for the delayed acquisition financing of a cross-collateralized and cross-defaulted portfolio. The loan portfolio encompasses 1,052,721 square feet of industrial assets across three markets. This is the first term loan request of MDH Partners’ Fund II, which was raised in the first quarter of 2021 in a record-setting two months and totals $575 million of discretionary equity. In total, the fund has over $1.6 billion of buying power.
“Closing this deal with Truist gives MDH Partners the flexibility needed to continue executing our value-add strategy and increasing our footprint across key industrial markets in the United States,” said Arun Singh, Chief Financial Officer at MDH Partners. “The industrial market is incredibly strong, and we will continue to proactively seek investment opportunities that align with our goals and those of our partners.”
The loan portfolio consists of three industrial assets acquired by MDH Partners earlier this year, including 9555 Dry Fork Road in Cincinnati; 100 First Avenue in Scranton, Pennsylvania; and the Goodman Portfolio spread across two properties in Southern Texas. The largest asset, 9555 Dry Fork Road, is LEED Silver Certified and represents 55% of the net rentable area. The locations are ideal for distribution hubs with key access to major highways and airports. Each property is 100% leased with 8 years of WALT and no rollover during the loan term.
The loan is set on a 5-year floating rate with initial proceeds of $59.5 million and future funding of $9.7 million. MDH Partners is in the process of expanding 100 First Avenue by 160,000 square feet and received pari-passu funding for the expansion.
Mark Hancock, senior vice president at Truist Financial Commercial Real Estate, was the lead on the transaction. “Truist is pleased to provide the financing to further accelerate the growth of MDH Partners,” said Hancock. “We are very pleased to once again work with the talented MDH Executive Team and add this diversified industrial portfolio to the Bank’s commercial real estate platform.”
MDH Partners has remained very active in 2021, acquiring over 1.7 million square feet of industrial assets since January. The firm has expanded operations into new markets including Ohio and Pennsylvania, growing its portfolio to 70 assets across 14 states. Additionally, MDH Partners embraces the view that both investors and their investments have societal impacts, and has a long-standing commitment to its environmentally sustainable practices, social impact, diversity and inclusion and governance policies.
About MDH Partners
MDH Partners is an Atlanta-based real estate investment company managing its discretionary funds targeting industrial real estate across the United States on behalf of its institutional investors. Founded in 2005 as the successor to a fifty-year-old local real estate development company, MDH Partners has led and/or participated in over $4 billion (75 million square feet) of acquisitions, developments, and asset management as an advisor and investor. For more information, visit www.mdhpartners.com
