The Hubble Loan supports 481,000 square feet of acquisitions in the Inland Empire
MDH Partners today announced the closing of a new $80 million loan which was provided by accounts managed by global investment firm KKR. The Hubble Loan finances MDH’s recent acquisitions of the Knox Logistics Center and Harvill Logistics Center in California’s Inland Empire. Both buildings are less than five years old, are 100% leased, and are both located in Perris, California. The new financing also marks the first real estate credit transaction between MDH and KKR. Arun Singh led the process for MDH Partners.
“Significant financing is hard to come by in the current volatile market environment,” said Arun Singh, CFO at MDH Partners. “As lenders of all types become more conservative with their capital allocation, we are fortunate to forge this new relationship with KKR. We will endeavor to build this relationship as we execute our acquisition strategy in key growth markets.”
The closing of the Hubble Loan follows MDH Partners’ closing of the Discovery Loan Expansion in June the Gemini Loan in July of this year. All three loans funded property acquisitions by MDH Partners’ Fund II, a fund which originally closed in April 2021 with $575 million of equity and was upsized in October 2022 to $750 million of equity. Now with $2 billion in buying power, Fund II is more than 80% invested in dozens of industrial acquisitions and new developments across the country.
“We are delighted to establish a new lending relationship with the MDH team to support their purchase of two excellent quality logistics assets,” said Celine Comeau, Director at KKR. “We look forward to watching the MDH team execute their business plan and continue growing their portfolio.”
In July, MDH Partners acquired Knox Logistics Center, a 147,354-square-foot, Class-A industrial building located in Perris, California, and Harvill Logistics Center, a 333,570-square-foot, Class-A industrial building located in Perris, California. Both assets are fully leased. According to JLL, the Inland Empire boasts strong leasing fundamentals with 11 million square feet leased in the second quarter. The market is anticipated to be in a continued state of stability and strength.
MDH Partners has been active this year, acquiring nearly five million square feet of industrial assets throughout the U.S. since January. The firm recently expanded its portfolio into new markets including California, Minnesota, Maryland, Indiana, Illinois and Pennsylvania, and currently owns more than 106 assets across 20 states.
KKR’s global real estate business invests in high-quality, thematic real estate through a full range of scaled equity and debt strategies. Managing over $64 billion in assets as of June 30, 2023, KKR’s approximately 150 dedicated real estate investment and asset management professionals across 17 offices apply the capabilities and knowledge of KKR’s global platform to deliver solutions for clients and investors.
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 $8 billion (100 million square feet) of acquisitions, developments, and asset management as an advisor and investor. For more information, visit www.mdhpartners.com.
