JLL REIT buys Phoenix area industrial assembly with $ 49 million MetLife loan – Commercial Observer

MetLife Investment Management provided $ 49 million in acquisition debt to JLL Income Real Estate Trust (JLLIPT) to acquire an assembly of four industrial property buildings in Chandler, Arizona, according to information from JLL and MetLife.

The seven-year fixed-rate mortgage, which will pay interest at a rate of 2.7%, was used to acquire JLLIPT for $ 91 million of Lotus Project Phase I, a recently completed industrial development of several buildings located at 6511, 6565, 6615 and 6677 West Frye Road in Chandler, a town about 35 km southeast of Phoenix.

The loan closed on May 18 and originated from the MetLife office in Los Angeles. Cushman and Wakefield helped facilitate the sale, according to information from Conor Commercial Real Estate, one of the two developers responsible for building the properties.

An aerial view of the southeast distribution center of JLLIPT Phoenix, formerly known as Lotus Project Phase I. Courtesy: MetLife

“Real estate debt continues to be available on favorable terms for institutional borrowers and stabilized assets,” said JLLIPT President and CEO vs. Allan Swaringen said in a statement. “The broader industrial sector has proven to be resilient throughout the pandemic and maintains its position as one of the best performing real estate sectors. Given the current low interest rate environment, as well as the high weighted average lease term of over eight years for this property, now is the time to lock in attractive long-term fixed rates. “

Developed by Conor and Joint Venture Partner WHI Real Estate Partners, the industrial assembly of approximately 473,500 square feet was built under the name Lotus Project Phase I, although JLLIPT called it Southeast Phoenix Distribution Center in its announcement of the acquisition. With this sale, Lotus Phase II Project, which will provide three more industrial buildings, totaling about 300,000 square feet, is now underway, according to Conor.

Built in 2019, the Phase I properties of the Lotus Project are located in such a position that they are close to the main roads of Interstate 10 and the extension of the Loop 202 freeway, and they are also just a short walk away. minutes drive to downtown Phoenix and the city. Sky Harbor International Airport. Buildings include 119 dock-height doors, 32-foot clearance heights, and 210-foot concrete truck lots with fencing, among other offerings; in total, they also have 829 parking spaces.

The development was 96% rented at time of sale, with CBRE leading the rental efforts, according to information from Conor.

In February, CBRE announced to have locked up three tenants to occupy nearly 216,000 square feet at the site. Based on Chandler VB Cosmetics was one of three tenants, while the other two included a “technology distributor” and a food and beverage company, both of which planned to use the space for distribution and warehousing.

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