Joint venture equity and financing raised to recapitalize Detroit industrial campus

DETROIT, May 2, 2023 – JLL Capital Markets announced today the $125 million recapitalization of Gateway Industrial Center, a 69-acre, 1.4-million-square-feet industrial campus located in Metro Detroit.

JLL represented Innovo Development Group in arranging $10 million of JV equity utilizing the Realty Mogul platform to recapitalize the venture. The equity raise follows an $80 million financing package JLL also arranged in June 2021 on behalf of the sponsor.

Gateway Industrial Center is located at 12601 Southfield Freeway, which provides immediate access to both Interstate 96, the area’s main east-west artery, and the Southfield Freeway, which serves as the area’s primary north-south transportation route connecting tenants to Interstate 94 and 75. Additionally, the property has on-site access to regional railway via the Central Pacific - Oak Terminal, while offering tenants access to a skilled local workforce in the heart of Metro Detroit.

Last month, Detroit-based Innovo completed an expansion of the property totalling 421,000 square-feet of speculative development. The new, state-of-the-art manufacturing, warehouse and logistics facility features over 60 dock positions, 36-foot clear heights, 50-by-50-foot column spacing, heavy power suitable for electric vehicle battery requirements, LED lighting, and ESFR fire suppression. Additionally, the property provides parking for 317 vehicles and 100 trailers.

The JLL Debt and Equity Advisory team representing the sponsor was led by Senior Director Stephen Van Leer, Managing Director Ed Halaburt, Managing Director Trent Niederberger and Director Ross Bratcher. Senior Vice President Sean Cavanaugh is handling leasing for the property.

“We are proud to partner with an institutional capital provider who recognizes the significant growth opportunity in the Detroit industrial market,” said Brian Mullally, Principal and Co-Founder of Innovo. “Realty Mogul offers us the kind of expansive partnership that will help our team continue to take on exciting new projects in Detroit and other great markets.”

“The newly constructed property is arriving at an exciting time for the Detroit market, which continues to exhibit unprecedented rent growth while maintaining one of the lowest vacancy rates in the Midwest,” Van Leer added.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

For more news, videos and research resources, please visit JLL’s newsroom.

Innovo Development Group is a privately held, vertically integrated real estate company focused on the development and management of industrial, multi-housing and retail properties located across the United States. Formed in 2016, the Michigan-based team continues to expand its portfolio in higher growth markets driven by partnerships and expertise in designing, building and managing new properties. Innovo was recently named one of Michigan’s 50 Companies to Watch. https://innovodev.com/innovo-to-be-honored-at-the-19th-annual-michigan-celebrates-awards-gala/

Founded in 2012, RealtyMogul provides accredited investors with the tools and information that empower them to review and assess institutional-quality multifamily, office, retail, industrial, ground-up development and other commercial real estate deals in dozens of markets across the country. RealtyMogul members can also invest in two proprietary Real Estate Investment Trusts (REITs) – the Income REIT and the Apartment Growth REIT. RealtyMogul members have collectively invested over $1 billion into more than $5.9 billion of real estate nationwide, including over 29,000 apartment units. For more information, visit realtymogul.com