Phillips Realty Capital (“PRC”) is pleased to announce the closing of a $57.5 million bridge loan for the acquisition and repositioning of a four property, 740,400 square foot industrial portfolio located in Miami and Tampa, Florida. The PRC team worked exclusively on behalf of repeat client HighBrook Investors (“HighBrook”), to secure the first-lien financing provided by a vehicle sub-advised by Miami-based Rialto Capital Management, LLC (“Rialto Capital”).
The portfolio, which includes three buildings in Miami and one in Tampa, was sourced off-market by HighBrook from a majority owner-user. The Miami properties are located at 3455 NW 54th Street, 5400 NW 32nd Court and 5530 NW 32nd Court and include three contiguous industrial warehouses totaling 306,000 square feet in Miami’s Hialeah submarket. Rail-served by CSX freight trains, the Hialeah assets have frontage on NW 54th Street, Hialeah’s major east-west thoroughfare, while also being two miles northeast of Miami International Airport and less than six miles northwest of Downtown Miami and the Port of Miami. The 434,000 square foot Tampa warehouse is located at 6708 Harney Road in Tampa’s East Tampa submarket. Also rail-served by CSX freight trains, the Tampa warehouse is one mile northwest of I-4, the major interstate connecting Tampa and Orlando, six miles northeast of Downtown Tampa and the Port of Tampa and eight miles east of Tampa International Airport. The Tampa property also includes 13.2 acres of vacant land, entitled for industrial development.
Loan proceeds represented initial financing for the acquisition with additional funds for capital expenditures and leasing reserves. “HighBrook’s successful track record of repositioning undervalued real estate combined with Rialto Capital’s market knowledge and relationship-driven approach creates a natural partnership to capitalize on the robust e-commerce and logistics demand in these expanding coastal economies,” said Malcolm Shaw of PRC. The acquisition represents HighBrook’s second industrial investment in Florida since opening its West Palm Beach office.
The Phillips Realty Capital team that sourced and structured the financing included Malcolm Shaw, Steve Shaw, Harmon Handorf, and Finn Dunne.
ABOUT PHILLIPS REALTY CAPITAL
Phillips Realty Capital (“Phillips”) is a leader in Washington, D.C. commercial real estate finance, structuring approximately $1.5 billion in debt and equity transactions a year and servicing a $2.5 billion loan portfolio on behalf of 25 institutional investors. Established in 1933 and still privately owned, Phillips has a proven track record of collaborating with premier property owners, lenders, and investors to structure the most competitive transactions available in the market. With offices in Bethesda, Richmond, Charlottesville, and Alexandria, dedicated teams of experts deliver reliable financial analysis, precise valuations, and deep knowledge of capital markets to structure capital stacks that leverage debt and equity financing to maximize the value of client assets. For more information, visit www.phillipsrealtycapital.com.
ABOUT HIGHBROOK INVESTORS
HighBrook Investors is a real estate private equity firm which acquires and actively manages property investments in the United States and Europe. Utilizing its collective experience across private, public, domestic, and developed international markets, the HighBrook team specializes in sourcing and identifying unique opportunities for value investing across market cycles. HighBrook purchased its first asset in 2010 and has since launched four fully discretionary commingled funds and three co-investment vehicles. The firm maintains offices in New York, London, West Palm Beach, and Luxembourg.
ABOUT RIALTO CAPITAL
Rialto Capital is part of a fully integrated real estate investment management, asset management and operating company. Rialto Capital was formed in 2007, and since its founding, has participated in the investment of billions of dollars of equity in real estate assets. The company invests and manages assets throughout the capital structure in real estate properties, loans, and securities. For more information, please visit www.rialtocapital.com.