National industrial service facility portfolio acquisition financed with $61M loan

CHICAGO, June 16, 2022 – JLL Capital Markets announced today that it has arranged $61 million in acquisition financing for an industrial portfolio comprising nearly two-dozen last-mile, cross-dock truck terminals and transload properties across 17 key markets in the Southeast, Mid-Atlantic, New England and Central U.S.

JLL worked on behalf of the borrower, Biynah Industrial Partners, to source the acquisition loan.

The portfolio is 93 percent leased to 18 tenants with an average tenure of nearly 17 years and substantial investment-grade in-place tenancy. The portfolio crosses various regions with assets in the Southeast, Mid-Atlantic, New England and Central U.S.

The portfolio provides end-to-end logistics solutions for today’s supply chain demands. These facilities represent mission-critical freight distribution transfer points, facilitating the flow of goods at the last stage of the supply chain. Each site offers optimal solutions for facility location, facility size, proximity to major infrastructure, truck court sizing, auto parking and other special use considerations.

This portfolio highlights the growing demand for Industrial Service Facilities (“ISF”), a rapidly growing multi-billion asset class that is suddenly on the radar of institutional investors. Such last-mile, cross-dock truck terminals and transload properties are increasingly driving investor attention due to their critical role in the movement of goods amidst supply chain backlogs.

The JLL Capital Markets team that represented the borrower was led by Managing Director Matthew Schoenfeldt and Director Lucas Borges.

“This was a unique portfolio,” said Jeff Josephs, managing member of Biynah. “Matt and Lucas found the ideal partner for us on the debt side that made the acquisition seamless.”

“JLL is pleased to have the opportunity to partner with Biynah Industrial Partners, who’s among the premier investors in the space,” added Schoenfeldt.

“With high barriers to entry, low vacancy rates and far less upkeep than traditional distribution facilities, ISF is an emerging asset class that has increasingly generated interest from the lending community,” Borges said. “The level of lender interest in this portfolio speaks to ISF’s significant growth potential within the broader industrial market.”

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.

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Biynah Industrial Partners (BIP) is a Minneapolis based private equity firm that makes direct investments in industrial real estate located throughout the United States.

BIP’s primary focus is directly investing in U.S. industrial real estate. The properties BIP acquires are well-located, highly functional, and purchased at a discount to replacement cost.