JLL REIT to Acquire Industrial Assemblage in the Phoenix Area with MetLife Loan of $ 49M – Commercial Observer

MetLife Investment Management has provided acquisition debt of $ 49 million JLL Income Property Trust (JLLIPT) to acquire a four-building compilation of industrial real estate in Chandler, Arizona, according to information from JLL and MetLife.

The seven-year fixed rate mortgage loan, which has a 2.7 percent interest rate, went into the acquisition of JLLIPT for $ 91 million Lotus project Phase I., a recently completed industrial development with several buildings in 6511, 6565, 6615 and 6677 West Frye Road in Chandler, a town about 22 miles southeast of Phoenix.

The loan closed on May 18 and came from the MetLife Los Angeles office. Cushman & Wakefield has helped make sales easier, according to Conor commercial real estate, one of two developers responsible for building the property.

An aerial view of JLLIPT’s Southeast Phoenix Distribution Center, formerly known as the Lotus Project Phase I. Courtesy of MetLife

“Real estate debt will continue to be available to institutional borrowers and stabilized assets on favorable terms,” ​​said JLLIPT President and CEO C. Allan Swaringen said in a statement. “The broader industrial sector has proven resilient throughout the pandemic and holds its position as one of the top performing real estate sectors. In view of the current low interest rate environment and the heavily weighted average rental period of more than eight years for this property, now is a good time to secure attractive long-term fixed interest rates. “

Developed by Conor and joint venture partner WHI real estate partnerThe approximately 473,500 square meter industrial assembly was built under the name Lotus Project Phase I, although JLLIPT referred to it as Southeast Phoenix Distribution Center in its announcement of the acquisition. With this sale, Lotus project phase IIAccording to Conor, three more industrial buildings with a total area of ​​around 300,000 square meters are currently underway.

The properties in Phase I of the Lotus Project, built in 2019, are in such a position that they roughly approximate the main thoroughfares of Interstate 10 and the Loop 202 highway extension. Plus, they’re just a short drive from downtown Phoenix and the city Sky Harbor International Airport. Buildings include 119 dock-high doors, 32-foot-heights, and 210-foot concrete truck bays with fences, among others. They have a total of 829 parking spaces.

The development was 96 percent were rented at the time of saleWith CBRE Leading leasing efforts according to information from Conor.

In February CBRE announced that it had imprisoned three tenants occupy almost 216,000 square meters at the site. Chandler based VB cosmetics was one of the three tenants while the other two included a “technology distributor” and a food and beverage company, both of whom planned to use the space for distribution and storage.

Comments are closed.