HFF announces $50M sale and $32.5M financing of 43-building industrial portfolio in Memphis, Tennessee
DALLAS, TX – May 31, 2018 – Holliday Fenoglio Fowler, L.P. (HFF) announces the $50 million sale of and the $32.5 million acquisition financing for Memphis Depot, a 43-building industrial portfolio totaling 4.2 million square feet in Memphis, Tennessee.
The HFF team marketed the property on behalf of the seller, Mayfield Properties, LP. A partnership between Diamond Properties and funds managed by Ares Management, L.P. (NYSE: ARES) real estate group purchased the asset. Additionally, working on behalf of the new owner, the HFF team placed the seven-year, fixed-rate acquisition loan with Allegiant Real Estate Capital. Memphis Depot is the largest single-asset industrial trade in Memphis in almost two years.
Originally constructed in 1942 as a military supply base named the Memphis Defense Depot for use in World War II, the military used it until 1997 when it was redeveloped into an industrial park by the city of Memphis and Shelby County. In 2004, NAID, an association of defense communities, recognized the project as the best example of an implemented military redevelopment plan from a field of more than 100 bases. The portfolio is 91 percent leased and features 43 distribution and warehouse facilities that are grouped into three: North Park, which comprises 25 buildings with clear heights ranging from 14 to 16 feet; South Park, which totals 14 buildings with an average clear height of 20 feet; and Interior Park, which includes four buildings with an average clear height of 25 feet. The buildings are located on 265 acres in an infill location one mile of Memphis International Airport, the No. 1 cargo airport in the United States, and five miles from downtown Memphis.
The HFF investment advisory team included managing director Adam Herrin and director Stephen Bailey along with senior managing director Jason Nettles.
The HFF debt placement team representing the borrower consisted of senior managing director Brian Carlton and analysts David Wheless and Nielsen Koepfgen.
About Mayfield Properties, LP
Mayfield Properties, LP, is a Texas limited partnership formed by industry veterans John Jenkins and Jim Jones to acquire industrial and commercial properties in major markets throughout the Southern half of the United States. The company targets industrial, distribution and warehouse properties between $4 million and $100 million in size with a geographic focus in established industrial markets throughout the Southwest, Southeast and Midwest United States. Mayfield is focused on acquiring assets below replacement cost with an additional focus on sustained functionality. Since 2010, Mayfield has acquired 7.5 million square feet of existing industrial assets in Dallas, Houston, San Antonio, Memphis and Atlanta. Learn more at maypropco.com.
About Diamond Properties
Diamond Properties is a commercial real estate business located in Mount Kisco, New York, that focuses on the acquisition of commercial properties with potential for substantial improvement through hands-on property management, market repositioning and capital upgrades. Since Diamond Properties was founded in 1993, it has acquired in excess of 70 properties, including office, medical, industrial, retail, entertainment, self storage, residential, lodging and land, in seven states and currently own in excess of 60 of those properties, totaling in excess of 11 million square feet. The company continues to pursue a capital improvement and leasing program that, when combined with quality-driven customer service, has enabled it to deliver consistently high tenant satisfaction and lease renewal rates. To learn more, visit dpmgt.com.
About Ares Management, L.P.
Ares Management, L.P. is a publicly traded, leading global alternative asset manager with approximately $112.5 billion of assets under management as of March 31, 2018 and 18 offices in the United States, Europe, Asia and Australia. Since its inception in 1997, Ares has adhered to a disciplined investment philosophy that focuses on delivering strong risk-adjusted investment returns throughout market cycles. Ares believes each of its three distinct but complementary investment groups in Credit, Private Equity and Real Estate is a market leader based on assets under management and investment performance. Ares was built upon the fundamental principle that each group benefits from being part of the greater whole. For more information, visit aresmgmt.com.
HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. HFF, HFF Real Estate Limited, HFF Securities L.P. and HFF Securities Limited are owned by HFF, Inc. (NYSE: HF). For more information, please visit hfflp.com or follow HFF on Twitter @HFF.