Minneapolis, AUGUST 2, 2016 – Joel Torborg and Mark Roos with CBRE Capital Markets’ Debt & Structured Finance team have arranged $9.0 million in debt and equity for the acquisition of Park Industrial Village, a seven-building, 232,674-square-foot industrial park located in Plymouth, Minnesota. The building was 93 percent leased at the time of closing.
CBRE worked on behalf of the buyer, MSP Plymouth Park Industrial, LLC, an affiliate of Biynah Industrial Partners. Biynah engaged CBRE to find an equity partner that matched their investment plan for the property and to find non-recourse, fixed-rate, bridge debt that allowed them to acquire the property and supply funds for future capital improvements to the property, without burdening the deal with excess structure.
CBRE was able to meet Biynah’s needs by arranging a 5-year loan with a regional bank that featured a sub 4.00% fixed rate loan with 2 years interest only and flexible prepayment throughout the loan term. The debt and equity comprised approximately 90% of the capital stack, allowing the borrower to acquire the property and make value-add improvements including roof replacements and various other exterior upgrades.
“We were able to meet the client’s objectives by pairing them with a joint venture equity partner whose long-term investment horizon matched their own and combined that with financing which was accretive to the deal,” said Joel Torborg, First Vice President with CBRE.
CBRE’s Minneapolis DSF group of Doug Seylar, Joel Torborg, Ben Bastian, Jessica Burke and Mark Roos focuses on loan origination and equity placement of all asset types. The Debt & Structured Finance (DSF) team also helps provide investment and advisory services to meet the financing needs of real estate owners ranging from private investors to large public entities. For more information regarding our lending and mortgage banking services, please contact: Doug Seylar, Managing Director - CBRE Capital Markets.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
