Institutional Property Advisors (IPA), a division of Marcus & Millichap, announced the $96.7 million financing of three industrial properties in Rockford, Illinois.

IPA Capital Markets’ Frank Montalto, managing director, and Ethan Splan, associate director in the firm’s Chicago downtown office, secured three-year, non-recourse financing with Bank OZK on behalf of Craig Erdmier, a prolific Northern Illinois–based design-build and construction management professional and general contractor. “This transaction presented a rare opportunity to finance a sponsor-developed industrial portfolio backed by a strong credit tenant with zero leasing risk,” said Montalto.

The portfolio comprises over 650,000 square feet, including two fully stabilized, mission-critical industrial buildings totaling 503,395 square feet. Each was developed as a build-to-suit facility for a global pharmaceutical services provider.

The financing will be used to consolidate the stabilized assets and cross-collateralize the income-producing properties to support the construction of the third facility, which will total approximately 155,000 square feet.