Northmarq’s Houston Debt + Equity team secures $40 million acquisition financing for 9-property industrial portfolio
HOUSTON (March 20, 2024) — Northmarq’s Houston Debt + Equity team of Warren Hitchcock, managing director, Blane Eikenhorst, vice president, and Chris Compton, investment analyst, has arranged a $40,000,000 acquisition loan for a 622,000-sq.-ft. nine-property, small bay industrial portfolio in Houston, Texas. The portfolio includes 46 buildings at locations near City Centre at the intersection of I-10 and Beltway 8 as well as the 290 inside Beltway 8.
“Considering the timing of this acquisition during significant market uncertainty and interest rate volatility, the sponsors had a strong preference to reduce risk through balance sheet fixed rate acquisition financing including strategically structured earnouts and good news TILC funding,” said Hitchcock.
“Our team at Northmarq encouraged and accepted the challenge to source the capital that checks every box: higher leverage, value add, future funds, a lower fixed rate, prepay flexibility, extension ability, all while focused on certainty of execution as a top priority. Our capital sources are strategically pursuing this smaller tenant and smaller bay infill industrial given the barriers to entry, rising construction costs and captured demand for small businesses; in a tough lending environment, there is capital for this product.”
Northmarq arranged the fixed rate bridge loan on behalf of the borrower, Pagewood Real Estate, through our correspondent relationship with a life insurance company which closed over $2 billion in 2023. The transaction was structured on a short term with extension options and prepay and asset release flexibility. The sale was brokered by Vice President Stephen Ghedi and Executive Vice President Jim Autenreith of Moody Rambin.
“After clearing the entire market, I believe we delivered a win/win. This was a large, complex multi-property transaction, and the Pagewood team were true professionals from start to finish and more than prepared for the challenge,” added Hitchcock. “The Pagewood’s team historical success, commitment to innovative technology and team approach led to the excellent capital terms and structure. It was our privilege to work together and introduce them to our correspondent life company for this capitalization.”
Meet our team
Northmarq is a full-service capital markets resource for commercial real estate investors, offering seamless collaboration with top experts in debt, equity, investment sales, loan servicing, and fund management. The company combines industry-leading capabilities with a flexible structure, enabling its national team of experienced professionals to create innovative solutions for clients. Northmarq's solid foundation and entrepreneurial approach have built an annual transaction volume of more than $39 billion and a loan servicing portfolio of more than $76 billion. Through the 2022 acquisition of Stan Johnson Company and Four Pillars Capital Markets, Northmarq established itself as a provider of opportunities across all major asset classes. For more information, visit: www.northmarq.com.
