NEW
YORK, March 8, 2023 /PRNewswire/ -- On behalf of
Burton-Katzman and DRA Advisors, Newmark has arranged approximately
$150 million of financing proceeds to
facilitate the acquisition of 24 strategically located industrial
properties across the Midwest (the "Portfolio"). The Newmark team
was led by Co-Heads of Debt & Structured Finance, Jordan Roeschlaub and Dustin Stolly, along with Senior Managing
Director Chris Kramer. Protective
Life, Old National Bank and One America originated the loans.
![Image courtesy of Burton Katzman: 30860 Sierra Dr. Chesterfield Township, MI Image courtesy of Burton Katzman: 30860 Sierra Dr. Chesterfield Township, MI](https://mma.prnewswire.com/media/2018171/30860_Sierra_Dr__Chesterfield_Township__MI.jpg)
The Portfolio spans 2.2 million square feet, is currently 99%
leased with a five-year weighted average lease term (WALT) and
features a diversified national tenant roster. The combination of
single and multi-tenant commercial properties has a proven track
record of long-term stability; the Portfolio has retained occupancy
levels above 99% for the past decade, with current in-place tenants
averaging over ten years in their space. With over 40 tenants on
the rent roll, no user occupies more than 15% of the Portfolio's
square footage, effectively mitigating rollover risk.
"Investment in industrial real estate by institutional owners
remains a top-choice asset class for investors, especially those in
secondary and tertiary markets that still offer growth potential,"
said Stolly.
The Detroit industrial market
continues to experience strong market fundamentals; vacancy rates
continue to sit near all-time lows, generating double-digit rent
growth year-over-year post-pandemic. The Portfolio features assets
across dense industrial hubs with the highest barriers to entry,
including Auburn Hills,
Sterling Heights, Dearborn and Livonia.
The Burton-Katzman team has successfully operated the Portfolio
historically and developed extensive relationships with the
existing tenancy, allowing them to create strategic leasing
transactions as the preeminent operator of light industrial across
the Detroit Metro. DRA Advisors
has an extensive track record, including over 84 million square
feet of industrial acquisitions since its inception.
"The Portfolio represents a highly compelling opportunity to
acquire a dynamic, well-occupied, and cash-flowing light industrial
portfolio at an attractive basis with a best-in-class joint venture
partner," explained Brett Gottlieb,
Managing Director for DRA Advisors.
About Burton-Katzman
Burton-Katzman is a fully integrated real estate company with
extensive experience and expertise across property acquisition,
planning and development, project and construction management,
strategic planning and asset management. With over 110 years of
history in the real estate industry, with an emphasis on the
industrial market, Burton-Katzman has become well versed in
effectively building and managing properties across various asset
classes.
About DRA Advisors
DRA Advisors LLC is a New
York-based registered investment advisor with approximately
95 employees specializing in real estate investment management
services for institutional and private investors, including pension
funds, university endowments, sovereign wealth funds, foundations,
and insurance companies. Since DRA was founded in 1986, the firm
has opened additional offices in Miami and San
Francisco while acquiring over $37.8
billion of real estate. The acquisitions include 84 million
square feet of industrial, 65 million square feet of office, 87
million square feet of retail and 84,000 multifamily units. As of
September 30, 2022, DRA has
$12.3 billion in gross assets under
management. http://draadvisors.com
About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its
subsidiaries ("Newmark"), is a world leader in commercial real
estate, seamlessly powering every phase of the property life cycle.
Newmark's comprehensive suite of services and products is uniquely
tailored to each client, from owners to occupiers, investors to
founders, and startups to blue-chip companies. Combining the
platform's global reach with market intelligence in both
established and emerging property markets, Newmark provides
superior service to clients across the industry
spectrum. Newmark generated revenues of approximately
$2.7 billion for the year ending
December 31, 2022. Newmark's
company-owned offices, together with its business partners, operate
from approximately 180 offices with nearly 6,700 professionals
around the world. To learn more, visit nmrk.com or
follow @newmark.
Discussion of Forward-Looking
Statements about Newmark
Statements in this document regarding Newmark that are not
historical facts are "forward-looking statements" that involve
risks and uncertainties, which could cause actual results to differ
from those contained in the forward-looking statements. These
include statements about the effects of the COVID-19 pandemic on
the Company's business, results, financial position, liquidity and
outlook, which may constitute forward-looking statements and are
subject to the risk that the actual impact may differ, possibly
materially, from what is currently expected. Except as required by
law, Newmark undertakes no obligation to update any forward-looking
statements. For a discussion of additional risks and uncertainties,
which could cause actual results to differ from those contained in
the forward-looking statements, see Newmark's Securities and
Exchange Commission filings, including, but not limited to, the
risk factors and Special Note on Forward-Looking Information set
forth in these filings and any updates to such risk factors and
Special Note on Forward-Looking Information contained in subsequent
reports on Form 10-K, Form 10-Q or Form 8-K.
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