Newmark Facilitates $240M Industrial Joint Venture Between DRA Advisors and Burton Katzman; and go forward Programmatic Venture
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NEW YORK, March 6, 2023 ~ Newmark Group, Inc. recently announced the successful completion of a $240 million joint venture between Burton Katzman and DRA Advisors for the recapitalization of 24 infill light industrial properties in the Midwest. The Newmark team was led by Vice-Chairmen and Co-Heads of Debt & Structured Finance Jordan Roeschlaub and Dustin Stolly, along with Director Eden Abraham. Executive Managing Director Daniel Canvasser from the Detroit office provided regional support on the transaction.

The 24-property industrial portfolio spans over 2.2 million square feet, is 99% leased with a five-year weighted average lease term (WALT) and features a diversified national tenant roster. With over 40 tenants on the rent roll, no tenant occupies more than 15% of the portfolio's square footage, mitigating rollover risk. Newmark also arranged the financing for this transaction.

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The Venture will target value-add returns by acquiring industrial assets across the Midwest where rents are below market. DRA Advisors and Burton Katzam (the Sponsor) can create value through strategic leasing via their extensive relationships in the automotive industry. Additionally, Sponsorship will be developing and expanding the space of several assets in the seed portfolio.

Jordan Roeschlaub commented that "with a diversified rent roll and strong WALT, the seed portfolio is comprised of some of the most credit-worthy tenants in the automotive industry." Dustin Stolly added that "this opportunity was well received by the capital markets community and demonstrated strong institutional investor demand for light industrial assets." Brett Gottlieb, Managing Director for DRA Advisors said 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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Newmark's effort to raise capital for this Venture is part of their continued push into equity financing focused on raising capital for both platform and programmatic joint ventures. 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; while DRA Advisors is an investment advisor specializing in real estate investment and management services for institutional and private investors with approximately $13 billion in gross assets under management since its inception in 1986.

Newmark Group Inc., together with its subsidiaries ("Newmark"), is a world leader in commercial real estate services providing comprehensive services tailored to each client from owners to occupiers, investors to founders, startups to blue chip companies across various asset classes globally. With revenues of approximately $2.7 billion for 2022 year ending December 31st 2022; Newmark operates from 180 offices with nearly 6,700 professionals around the world providing superior service to clients across all industries spectrum.

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