Stoltz Real Estate Partners has obtained a $102 million senior loan from PCCP LLC for a five-property Southeast industrial portfolio totaling 1.6 million square feet.
The warehouses are in Jefferson, Ga.; Jeffersonville, Ind.; Kings Mountain, N.C.; Ridgeville, S.C.; and La Verne, Tenn.
The buildings came online between 2018 and 2023 and were fully occupied by seven tenants at the time of the deal with a 4.6-year weighted average lease term. Four of the properties are institutionally developed bulk buildings that range between 157,000 and 636,000 square feet and feature 30- to 36-foot clear heights. The fifth one is an outdoor storage facility.
PCCP has some $39.7 billion of institutional capital raised, invested or managed. In October last year, the firm provided $252.3 million in construction financing to Crow Holdings and Panattoni for the development of three industrial buildings in Frederickson, Wash. Those properties are part of FRED310, an industrial campus set to measure 3.6 million square feet across five buildings upon full buildout.
Additionally, the company partnered with Panattoni and Hunt Cos. for the development of a 939,612-square-foot speculative facility in El Paso, Texas, dubbed Project Grande. The two-building project is expected for completion later this year.
The industrial sector stabilizes
In 2023, industrial maintained its position as one of the strongest CRE sectors, but it was also a year of transition, the latest CommercialEdge industrial report shows. National in-place rents reached $7.6 per square foot as of November, up 7.7 percent year-over-year. Los Angeles, Orange County and the Inland Empire registered the highest rent growth year-over-year through November clocking in at $13.7, $14.6 and $9.5, respectively.
On the development side, however, things have slowed down across the U.S. About 282.4 million square feet of industrial space broke ground through November, a steep decline from the 598 million square feet that began construction during the same period in 2022. Still, massive new projects are showing up in certain markets, such as Rockefeller Group and Matan Cos.’ 5 million-square-foot industrial and logistics center in Suffolk, Va.