Midtown Capital Partners has secured $62.92 million in acquisition financing to fund the purchase of 13 inner-city, small-bay industrial properties in Doral, Florida. Knighthead Funding provided the loan for Midtown's $86 million off-market acquisition of the 290,000 square foot portfolio, which spans 13.33 acres.
Midtown acquired the properties from Wes Realty in August. According to a previous report by The Real Deal, the transaction represented a near-record sales price for industrial properties in Miami-Dade County and ranks among the largest industrial property sales in the region.
Strategic asset collection
The 13 properties were developed and assembled over the last 30 years. Knighthead, which originated the deal with a team comprising Jonathan Daniel, Alexandra Wiggins and Joseph Marraccini, described this transaction as exemplary of their financing strategy. Alexandra Wiggins, Vice President at Knighthead Funding, explained that when providing financing, they seek an attractive collection of assets with significant value-add potential in an excellent inner-city location.
The properties are located west of Miami, less than a mile from Miami International Airport. They benefit from strong demand for small-bay industrial properties in South Florida, where vacancy rates are below 3 percent, according to Knighthead. Arrow Real Estate Advisors arranged the financing with a team consisting of Morris Betesh, Morris Dabbah and Zach Strauss.
Growing institutionalisation
Morris Betesh, Founder and Managing Partner at Arrow, stated that inner-city portfolios of this type are rare. He observed that the small-bay industrial property sector has matured significantly in recent years. This acquisition, along with the positive capital market response to the transaction, is further evidence of how increasingly institutionalised this asset class has become.
Midtown Capital Partners was not immediately available for comment.
