Northmarq arranges $45M financing for bourbon storage and post-distillation spirits facility in Shelbyville, KY
SHELBYVILLE, Ky. — Senior Vice President Randall Waddell of Northmarq’s Louisville office finalized a $45 million loan for The Blending House development, a collaboration between The Koetter Group (Floyds Knobs, Indiana) and The Spirits Group (Louisville, Kentucky) located on a 108-acre site at 1917 Vigo Road in Shelby County, Kentucky.
Northmarq arranged financing on behalf of the borrower through a relationship with MetLife Agricultural Finance. The permanent fixed-rate financing, which took out construction financing previously provided by Waddell, is structured on a seven-year term.
“This financing reflects the strength of a highly specialized, substantially leased asset and an experienced team,” Waddell said. “By combining state of the art bourbon storage with integrated post-distillation capabilities, the facility provides important infrastructure for Kentucky’s spirits industry.”
Recently completed, the campus includes seven premium rickhouses utilizing The Koetter Group’s innovative K-RAX barrel storage system and a 33,500-sq.-ft. blending and bottling facility. Built exclusively for post-distillation needs, The Blending House integrates maturation and storage, bulk whiskey sourcing, blending, bottling and back office-support for third-party spirits brands. The campus has total storage capacity exceeding 143,000 barrels and is more than 95 percent leased.
K-RAX, a Koetter subsidiary, “was formed to create and manufacture a superior storage system for distilled spirits designed to enhance operational safety, structural integrity and airflow,” said Bob Koetter, CEO of The Koetter Group.
The Spirits Group is a Louisville-based spirits advisory firm focused on strategy, sourcing, inventory and product development. “We built The Blending House to give brands a dedicated home for everything after distillation,” said Monica Wolf, CEO and co-founder of The Blending House and co-founder of The Spirits Group. “By bringing storage, blending, quality assurance, bottling and logistics together, we provide brands the reliable third-party facility we always wished existed when we were the client.” The Blending House does not distill and supports brands across spirits categories.
Located near the Louisville metro, Shelbyville offers convenient access to many of Kentucky’s leading distilleries and major transportation corridors. The property’s combination of large-scale barrel storage capacity and integrated blending and bottling operations create a centralized solution for bourbon producers seeking efficiency throughout the aging, production and distribution process.
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Northmarq is one of the largest privately held commercial real estate firms in the United States, combining a nationwide presence with deep local expertise. With more than 50 offices across the country, we provide a full suite of debt, equity, investment sales, loan servicing and fund management solutions for a comprehensive range of property types. Our unique structure allows us to connect clients with the best opportunities, yet be nimble enough to ensure access to every expert across our company. The firm manages a loan servicing portfolio of over $80 billion and has completed $91.3 billion in transactions over the past four years. At Northmarq, collaboration fuels results, helping clients achieve success in every market, nationwide.
