BOSTON – CrossHarbor Capital Partners, a Boston-based investment management firm that invests in core-plus, value-add, and opportunistic commercial real estate transactions throughout the United States, announced the closing of a $142 million first mortgage construction financing package, comprised of six separate cross-collateralized loans for the development of a six-property industrial portfolio.
The loans were originated by the firm’s recently launched CrossHarbor Senior Debt Income Fund, an open-end fund focused on the origination of debt investments secured by institutional-quality real estate nationwide. The borrower for the loans is Scannell Properties, a premier international build-to-suit and speculative developer based in Indianapolis with over 25 years of experience developing industrial, office, retail, and educational facilities throughout the United States, Canada and Europe.
CrossHarbor has partnered with National Life Group to provide the financings. National Life Group will provide an $85.4 million first mortgage senior A-note. CrossHarbor will hold the $57 million subordinate B-note. The properties include the following:
- An $84.1 million three phase development in Fort Worth, will span 1.6 million square feet across three buildings and contain a combined 97.2 acres. All of the buildings will feature 36’ clear heights, with depths ranging from 360’ to 600’ and 68 to 142 dock doors. One building will feature a rear-loading configuration, while the other two will be cross-docked. Each asset is being constructed with Class-A finishes, strong parking ratios, and well thought out configurations. The properties will be located in the Alliance submarket of North Fort Worth.
- An $18.3 million two building development site in Jacksonville, will span 273,500 square feet on a combined 17 upland acres. Both buildings will be rear-load buildings, however with slightly different configurations. One building will feature 37 dock doors, 32’ clear height, and 260’ depth. The other building features 28’ clear heights, 34 dock doors, and a depth of 240’. The Jacksonville project site is located just three miles from the Jacksonville Airport in the Jacksonville International Tradeport.
- A $47.0 million industrial development in Savannah, totaling 998,400 square feet and situated on 67.8 acres. The cross-docked, 520’ deep building will feature 224 dock doors and 36’ clear height. The site is located in the Morgan Lakes development, northwest of the Savannah International Airport and the Port of Savannah.
“We are pleased to announce these latest financing transactions which demonstrates CrossHarbor’s efficiency in executing loans with favorable terms as well as our comprehensive understanding of the local market,” notes William Kremer, Managing Partner and co-founder of CrossHarbor Capital Partners LLC.
“CrossHarbor and Scannell are existing relationships for National Life Group, so the execution was seamless, and we anticipate it will translate into additional lending opportunities in the near future”, according to Paul Wolters, Head of Commercial Real Estate for Sentinel Asset Management Inc.
“Our new debt fund strategy reflects the growing opportunity nationwide for alternative lending and serves as a natural extension of our firm’s proven track record in commercial real estate investing,” adds Richard Flohr, Managing Director and Portfolio Manager for the CrossHarbor Senior Debt Income Fund. “Our in-house real estate debt team is comprised of a veteran group of origination personnel and we look forward to additional financing deals in the near future with both new and existing sponsors as we continue to expand our lending platform.”
CrossHarbor Capital Partners LLC is a boutique Boston-based alternative investment management firm with more than 25 years’ experience investing in core-plus, value-add and opportunistic debt and equity commercial real estate transactions. CrossHarbor has invested in more than $15 billion of commercial real estate on behalf of a diversified and highly regarded community of endowments, foundations, public and corporate pension plans, financial institutions, family offices and sovereign entities.
