Newmark Facilitates $150M Acquisition Loan for 2.2M SF Industrial Portfolio for DRA Advisors and Burton Katzman

NEW YORK, March 8, 2023 ~ Burton-Katzman and DRA Advisors have recently acquired 24 industrial properties across the Midwest, with Newmark arranging approximately $150 million of financing proceeds to facilitate the acquisition. The Newmark team was led by Co-Heads of Debt & Structured Finance, Jordan Roeschlaub and Dustin Stolly, along with Senior Managing Director Chris Kramer. Protective Life, Old National Bank and One America originated the loans.

The Portfolio spans 2.2 million square feet and is currently 99% leased with a five-year weighted average lease term (WALT). It features a diversified national tenant roster, with over 40 tenants on the rent roll and no user occupying more than 15% of the Portfolio's square footage.

Jordan Roeschlaub commented that "investment in industrial real estate by institutional owners remains a top-choice asset class for investors, especially those in secondary and tertiary markets that still offer growth potential".

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The Detroit industrial market continues to experience strong market fundamentals; vacancy rates continue to sit near all-time lows, generating double-digit rent growth year-over-year post-pandemic. The Portfolio features assets across dense industrial hubs with the highest barriers to entry, including Auburn Hills, Sterling Heights, Dearborn and Livonia.

Burton-Katzman has successfully operated the Portfolio historically and developed extensive relationships with existing tenancy, allowing them to create strategic leasing transactions as the preeminent operator of light industrial across the Detroit Metro. DRA Advisors has an extensive track record of over 84 million square feet of industrial acquisitions since its inception. Brett Gottlieb from DRA Advisors stated that "the Portfolio represents a highly compelling opportunity to acquire a dynamic, well-occupied, and cash-flowing light industrial portfolio at an attractive basis with a best-in-class joint venture partner".

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Burton Katzman is a fully integrated real estate company with extensive experience in property acquisition, planning and development, project and construction management, strategic planning and asset management; they have been in the real estate industry for over 110 years with an emphasis on the industrial market. DRA Advisors LLC is a New York based registered investment advisor specializing in real estate investment management services for institutional and private investors; since 1986 they have opened additional offices in Miami and San Francisco while acquiring over $37.8 billion of real estate including 84 million square feet of industrial space.

Newmark Group Inc., together with its subsidiaries (Newmark), is a world leader in commercial real estate providing comprehensive services tailored to each client from owners to occupiers; they generated revenues of approximately $2.7 billion for the year ending December 31st 2022 from nearly 6,700 professionals around the world operating from 180 offices worldwide.

This acquisition marks another successful collaboration between Burton Katzman & DRA Advisors LLC facilitated by Newmark Group Inc., demonstrating their expertise in commercial real estate investments across various asset classes while providing superior service to clients around the world.
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