MDH Partners Obtains $67M Acquisition Financing Loan for 900K-SF Industrial Portfolio

Atlanta, GA-based MDH Partners has closed $67.4 million in first-mortgage acquisition financing to support the MDH Estrella portfolio, which comprises five industrial assets totaling 900,110 square feet in AZ, IN, NC and VA. MDH acquired all five facilities via off-market transactions.

Arun Singh and Michael Loffredo of MDH Partners sourced the financing directly with a national bank. The initial swapped rate is 5.25% and reduces to 4.95% over time as the portfolio achieves high performance cash flows.

“Despite recent market disruptions, this competitive financing signifies efficiently priced debt capital is available for the right opportunities,” said Singh.

The portfolio consists of

• Kentwood 303 in Glendale, AZ
• Washington Business Park 1 in Noblesville, IN
• 8717 W Market Street in Greensboro, NC
• Park 100 Building 71 in Indianapolis, IN
• 3804 Cook Boulevard in Chesapeake, VA

The properties are currently 94.79%% occupied with 23 tenants and 5.57 years of weighted average lease term remaining. Kentwood 303 is the largest asset in the, representing 30.2% of the net rentable area. Both Washington Business Park 1 and Kentwood 303 were built in 2022.

Estrella is the fifth term loan request of MDH’s Fund II in the last twelve months. The fund was recently upsized from $575 million to $750 million with all investors upsizing their investments prorata. In total, the fund has over $2 billion of buying power and is 50% allocated.

Photo: Park 100