INDIANAPOLIS-Welsh Property Trust, based in Minnetonka, MN, has gained a $24.4-million loan for two industrial buildings in the suburbs here. The company agreed in August to pay almost $48 million for the two properties in Plainfield and Greenfield, totaling about 1.4 million square feet.
Joel Torborg, a VP with CBRE, arranged the debt through Allianz Life Insurance Co. of North America. Terms on the transaction included a sub 5% fixed rate for 10 years on a non-recourse first mortgage with 30 years of amortization. The debt was also structured to include substitution of collateral provisions.
The properties include 3003 Reeves Rd., Plainfield, a 741,221-square-foot distribution center leased to Redcats USA, a conglomerate. First Industrial was the seller. The Greenfield site is a multi-tenant, 629,000-square-foot property sold by 350 North LLC. Tenants include S. Abraham & Sons, Formica, Emerson and WallSource.
Torborg tells GlobeSt.com that the properties are full, stable, state-of-the-art in a healthy Midwest distribution market. In a statement at the purchase, Welsh CEO Scott Frederiksen said that the property has another 300,000 square feet of expansion potential. The privately-held REIT serves as the parent company for real estate holdings and real estate services businesses.
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