Barings is providing a $244 million loan to refinance buildings in Kansas, which includes 10 warehouses and distribution centers.
The 6.4 million square feet portfolio is in Logistics Park Kansas City, Edgerton, Kansas. Ares Management Real Estate fund and NorthPoint Development, a joint venture, own the buildings. The JV was established between 2014 and 2017. Currently, the portfolio is leased 93 percent to major brands including Amazon, Sam’s Club, Smart Warehousing, Assa Abloy, and Stanley Black & Decker.
The properties feature 706 dock doors (which average 35 feet in height), and concrete tilt-panel construction. Also, they all contain access to BNSF Railway’s intermodal rail facility.
“These assets are uniquely positioned to benefit from Kansas City’s healthy market fundamentals with the strategic location in NorthPoint’s world-class inland port,” Daniel Hedgepeth, director with Barings said in a statement.
In line with the move, the Midwest seems to be picking up industrial demand. The activity in the area is estimated to be worth $27 billion since the onset of the pandemic. Also, the NAIOP said it will host a new I.CON next year in the central part of the country to focus on activity in Chicago, Columbus, Indianapolis in addition to Kansas City. The attention of industrial activity has been historically centered on more East and West Coast markets, rather than the Heartland.
Barings, which also partners with institutional, insurance, and intermediary clients, will have its $28.4 billion real estate debt platform expanded with the new portfolio transaction.