NEW
YORK, March 6, 2023 /PRNewswire/ -- Newmark has
arranged a $240 million joint venture
(the "Venture") between the Sponsor, Burton
Katzman and DRA Advisors for the recapitalization of 24
infill light industrial properties in the Midwest. The Newmark team
was led by Vice-Chairmen and Co-Heads of Debt & Structured
Finance Jordan Roeschlaub and
Dustin Stolly, along with Director
Eden Abraham. Executive Managing
Director Daniel Canvasser from the Detroit office provided regional support on
the transaction.
The 24-property industrial portfolio spans over 2.2 million
square feet, is 99% leased with a five-year weighted average lease
term (WALT) and features a diversified national tenant roster. With
over 40 tenants on the rent roll, no tenant occupies more than 15%
of the portfolio's square footage, mitigating rollover risk.
Newmark also arranged the financing for this transaction.
The Venture will target value-add returns by acquiring
industrial assets across the Midwest where rents are below market.
DRA Advisors and Burton Katzam (the Sponsor) can create value
through strategic leasing via their extensive relationships in the
automotive industry. Additionally, Sponsorship will be developing
and expanding the space of several assets in the seed
portfolio.
"With a diversified rent roll and strong WALT, the seed
portfolio is comprised of some of the most credit-worthy tenants in
the automotive industry," commented Roeschlaub. "This opportunity
was well received by the capital markets community and demonstrated
the strong institutional investor demand for light industrial
assets," added Stolly.
"The Portfolio represents a highly compelling opportunity to
acquire a dynamic, well-occupied, and cash-flowing light industrial
portfolio at an attractive basis with a best-in-class joint venture
partner," explained Brett Gottlieb,
Managing Director for DRA Advisors.
The effort to raise capital for the Venture is part of Newmark's
continued push into equity financing focused on raising capital for
both platform and programmatic joint ventures.
About Burton-Katzman
Burton-Katzman is a fully integrated real estate company with
extensive experience and expertise across property acquisition,
planning and development, project and construction management,
strategic planning and asset management. With over 110 years of
history in the real estate industry, with an emphasis on the
industrial market, Burton-Katzman has become well versed in
effectively building and managing properties across various asset
classes.
About DRA Advisors
DRA Advisors is a registered investment advisor specializing in
real estate investment and management services for institutional
and private investors. As of September 30th,
2022, our team has approximately $13
billion in gross assets under management. Founded in 1986,
DRA has unlocked success for its clients by focusing on
conservative, value-added real estate investments in the office,
retail, multifamily, and industrial sectors within the United States. Since its inception, the
firm has acquired more than 1900 properties valued at over
$37 billion.
About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its
subsidiaries ("Newmark"), is a world leader in commercial real
estate, seamlessly powering every phase of the property life cycle.
Newmark's comprehensive suite of services and products is uniquely
tailored to each client, from owners to occupiers, investors to
founders, and startups to blue-chip companies. Combining the
platform's global reach with market intelligence in both
established and emerging property markets, Newmark provides
superior service to clients across the industry
spectrum. Newmark generated revenues of approximately
$2.7 billion for the year ending
December 31, 2022. Newmark's
company-owned offices, together with its business partners, operate
from approximately 180 offices with nearly 6,700 professionals
around the world. To learn more, visit nmrk.com or
follow @newmark.
Discussion of Forward-Looking
Statements about Newmark
Statements in this document regarding Newmark that are not
historical facts are "forward-looking statements" that involve
risks and uncertainties, which could cause actual results to differ
from those contained in the forward-looking statements. These
include statements about the effects of the COVID-19 pandemic on
the Company's business, results, financial position, liquidity and
outlook, which may constitute forward-looking statements and are
subject to the risk that the actual impact may differ, possibly
materially, from what is currently expected. Except as required by
law, Newmark undertakes no obligation to update any forward-looking
statements. For a discussion of additional risks and uncertainties,
which could cause actual results to differ from those contained in
the forward-looking statements, see Newmark's Securities and
Exchange Commission filings, including, but not limited to, the
risk factors and Special Note on Forward-Looking Information set
forth in these filings and any updates to such risk factors and
Special Note on Forward-Looking Information contained in subsequent
reports on Form 10-K, Form 10-Q or Form 8-K.
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SOURCE Newmark