MDH Partners today announces the closing of $17.8 million in financing from Regions Bank to construct 71 Logistics Center, a 216,000 square-foot, Class-A speculative industrial building located near the Austin-Bergstrom International Airport. MDH Partners acquired 45 acres of land for the facility in July and broke ground in August 2023. The acquisition is the fourth Texas-based purchase by the firm this year. Matt Gregory served as the acquisition lead for MDH Partners, and John Kull will act as the development manager for MDH. Chris Drew with JLL brokered the financing, and Ace Schlameus and Travis Secor with JLL will lease the project. ARCO Murray will be the general contractor.
“We’re excited to add the 71 Logistics Center development to our existing Texas portfolio. This project is designed to accommodate a wide variety of tenants, providing users excellent proximity to the Austin metro as well as abundant trailer and auto parking,” said Gregory, SVP at MDH Partners. “We’ve enjoyed working with the City of Austin and Travis County and look forward to helping facilitate continued growth in the area. The state of Texas will continue to be a major part of our acquisition and development strategy going forward with its dynamic local economies and strong population growth.”
Thomas Pendergrast, relationship manager for Regions Bank’s Income Property Group, said the bank’s work with MDH Partners reflects Regions’ strategic and consultative approach toward client service.
“At Regions Bank, our relationship approach to service provides clients with industry specific advice and financing solutions to meet their business objectives,” Pendergrast said. “The team of bankers across Regions’ Corporate Banking group is committed to providing strategic support that is tailored to clients’ success. MDH Partners has a long history in the industrial business sector, and we are pleased to provide financing options to support this development in Austin.”
71 Logistics Center is situated on 45 acres of land and located at the intersection of State Highway 71 and Norwood Lane in Austin. Once complete, the property will feature 142 parking spaces, 54 trailer parking spaces, ESFR sprinkler systems and 32-foot clear heights. 71 Logistics Center is ideally positioned with freeway frontage along State Highway 71, providing excellent connectivity to I-35 and US Highway 375. The property is located only six miles southeast from the Austin International Airport and has direct access to the entire Austin metropolitan statistical area, which is home to over 2.2 million people.
This financing is the thirteenth term loan request of MDH’s Fund II. Last year, the fund was upsized from $575 million to $750 million with all investors upsizing their investments pro rata. In total, the fund has over $2 billion of buying power and is over 80% allocated.
According to JLL, the Austin industrial market experienced 5.9 million square feet of positive net absorption in the first half of 2023, leaving only 5.1% of the metro’s industrial inventory vacant after adjusting for leased but not-yet-occupied space. In addition to Austin’s strong economy and population growth, Tesla and Samsung continue to drive demand as suppliers locate near their new facilities.
Once completed, 71 Logistics Center will increase MDH Partners’ Texas footprint to more than 3.7 million square feet. In June, the firm acquired South Belt Central, a 603,389-square-foot, Class-A industrial building located in Houston. The firm has remained active this year, acquiring nearly five million square feet of industrial assets throughout the U.S. since January. MDH Partners recently expanded its portfolio into new markets including California, Minnesota, Maryland, Indiana, Illinois and Pennsylvania, and currently owns more than 110 assets across 20 states.
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.
About Regions Financial Corporation
Regions Financial Corporation (NYSE:RF), with $156 billion in assets, is a member of the S&P 500 Index and is one of the nation’s largest full-service providers of consumer and commercial banking, wealth management, and mortgage products and services. Regions serves customers across the South, Midwest and Texas, and through its subsidiary, Regions Bank, operates approximately 1,250 banking offices and more than 2,000 ATMs. Regions Bank is an Equal Housing Lender and Member FDIC. Additional information about Regions and its full line of products and services can be found at www.regions.com.
