Northmarq arranges sale, financing, equity for 16-property DFW shallow bay industrial portfolio

GRAND PRAIRIE, Texas — Northmarq’s Tulsa Commercial Investment Sales team led by David Annett and Joe Habighorst, in collaboration with its Houston Debt + Equity team led by Warren Hitchcock, successfully arranged the sale, financing and equity placement for a shallow bay flex industrial facility portfolio totaling 255,2690 sq. ft. located in the DFW market.

The portfolio comprises 16 buildings across three infill industrial properties:

• Aero Business Park  |  2601-2670 Aero Drive (6 buildings – 113,355 sq. ft.)
• Corporate Park  |  2100 S Great SW Pkwy (6 buildings – 62,326 sq. ft.)
• Lone Star Park  |  605 E Palace Pkwy (4 buildings – 80,010 sq. ft.)

Northmarq represented the buyer, a joint venture between Thematic Capital Group and Dray Investments. The seller was an Arizona-based individual investor represented by Jeff Jackson of NAI Robert Lynn.

"We were able to identify this lightly marketed asset, off market, through a relationship broker we have previously closed with,” Annett said. “We were also able to identify this new-to-market investor for shallow bay industrial product who performed fantastically. The opportunity was clear: value creation through market-to-market and lease-up. We just needed the motivated buyer and the right capital stack to close — which we were able to do.”

At the time of closing, the portfolio was 75% occupied, presenting a 50% mark-to-market opportunity. The transaction included debt financing and JV equity placement for this large value-add industrial portfolio acquisition in DFW and was structured to secure 95% of the capital stack. A three-year, interest-only bridge loan was arranged by Hitchcock through a correspondent life company relationship.

This deal reflects the strength of the DFW industrial market and the strategic value of shallow-bay assets in infill locations. Achieving sub-5% execution on an asset with an 8.50% stabilized cap rate, which speaks to the borrower’s vision and the lender’s confidence in the market fundamentals.

The transaction included an over 65% loan to value loan and the majority of the equity capital stack brought as joint venture equity through a life company. In total, Northmarq brough 95% of the total capital stack.

“This was a complicated and challenging deal, but our clients saw the vision in this shallow bay/small bay industrial space, rolled up their sleeves, and got it done,” Hitchcock said. “The assets are already seeing leasing interest at 25–30% higher rents shortly after acquisition due to their new institutional approach.”

This 16-building portfolio is 255,690-sq.-ft. in size and features 96 units. Each of the properties are located within a half-mile of a highway.