The Week's Atlanta Deal Sheet: MDH Partners Gets Big Mortgage For Warehouse Portfolio
An Atlanta-based industrial investor has closed on a more than $60M first mortgage for its recent purchase of a five-warehouse portfolio scattered across the U.S.
MDH Partners co-founder and bestselling fiction author Jeff Small obtained a $67.4M loan from an unnamed national bank to finance the firm’s acquisition of the Estrella portfolio, consisting of 900K SF of warehouse space in Glendale, Arizona; Greensboro, North Carolina; Noblesville and Indianapolis, Indiana; and Chesapeake, Virginia. The portfolio is more than 90% leased to 23 tenants.
MDH Chief Financial Office Arun Singh and associate Michael Loffredo sourced the bank loan, whose rate can be swapped from 5.25% to 4.95% over time if the portfolio achieves high-performance cash flows, according to a press release.
Estrella is held by MDH’s Fund II, which was recently upsized from $575M to $750M in capital, giving the fund more than $2B in buying power. Half of the fund has been allocated as of press time.
In April, MDH obtained an $85M loan from Truist Bank to buy a 12-building industrial portfolio totaling more than 800K SF in California, Georgia, Maryland and Minnesota.
LEASES
Beauty supply retailer Sephora and women’s apparel retailer Soma have leased space at Atlantic Station for new stores. Both retailers are taking street-level retail space at 260 18th St. in the mixed-use mini-city in Midtown, scheduled to open next year.
SALES
Alliance Residential Co. purchased more than 22 acres at 1900 Vernon St. in LaGrange, with plans to break ground on a 315-unit Prose workforce apartment complex by fall 2023. Terms of the sale were not disclosed.
The historic Artmore Hotel on West Peachtree Street sold to Scarp Ridge Capital Partners from Urbana Varro for $21M, CoStar recently reported. The sale of the 103-room hotel, originally built in 1924 as the Granada Apartments, was brokered by Hodges Ward Elliott Managing Director Todd Ratliff and Senior Vice President Nate Ries.
According to Scarp Ridge, the firm plans to renovate and expand the hotel to 120 rooms as a boutique lifestyle hotel.
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Lincoln Advisors has purchased Northwest Medical Center, a four-story, 149K SF medical office building in Buckhead from a joint venture between Harrison Street and HealthAmerica Realty Group for an undisclosed sum. According to CoStar, Lincoln paid $72M for the property located at 3280 Howell Mill Road.
CBRE Vice Chairman Lee Asher, Senior Vice President Zack Holderman, First Vice President Jordan Selbiger, Senior Director Trent Jemmett and Associate Director Cole Reethof brokered the sale.
THIS AND THAT
Atlanta-based Tioga Capital has tapped Lincoln Property Company Southeast to lease and manage the three-building Barrett Summit office park in Kennesaw. The property, totaling 180K SF, is at 1990 Vaughn Road. Tioga acquired the property earlier this year for an undisclosed sum. The Cobb County Board of Tax Assessors listed the park’s value at more than $23M this year.
