The collateral was part of the 24.7 million-sf portfolio that ProLogis North American Industrial Fund III acquired from a joint venture of Dermody properties and CalSTRS last year for $1.8 billion. Dave Kocourek, co-head of production for Allstate REIG's commercial mortgage division tells GlobeSt.com that Allstate REIG in 2004 funded a 10-year $80-million loan using the same collateral.
That previous loan was assumed by the fund when it acquired the larger portfolio, he says, and the new loan was made co-terminus with the previous loan. The interest rate on the new loan, which he declined to pinpoint, was based on the interpolated six-year treasury.
"There is now $163 million of debt on that portfolio right now," Kocourek says. "We feel the loan-to-value ratio is around 65%."
That is about the maximum leverage Allstate REIG will provide, he says. "Everybody has been pulling back; the standard deal no is 60- to 65% leverage," he says.
ProLogis received the loan because it is a known quantity—it is one of Allstate's largest mortgage borrowers—and because it's considered a high-credit borrower, Kocourek says.
"We're being very selective," he says. "We are focusing on relationships we have [with] highly regarded clients."
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