$252.5M secured for national industrial portfolio spanning 3.64M SF

JLL’s Capital Markets division recently secured a $252.5 million financing deal for the Lower Terra Industrial Portfolio, comprising 21 essential properties spanning 3.64 million square feet in 17 U.S. industrial markets. This funding effort was led by JLL on behalf of Brennan Investment Group and Farallon Capital, resulting in a five-year, floating-rate loan from Apollo’s affiliates.

Geographically distributed across 13 states in various regions of the U.S., the portfolio strategically situates itself in high-performing industrial markets, encompassing labor markets representing about 18% of the national workforce. With a strong average tenant tenure exceeding 30 years, including several facilities critical to operations with significant investment in infrastructure, the portfolio is well-positioned. Currently, the properties boast a 98% occupancy rate, hosting 16 diverse tenants from key sectors of the U.S. economy.

Additionally, the portfolio’s exposure to the manufacturing sector positions it favorably to capitalize on increased leasing demand as leases come up for renewal. Data from Q1 2025 shows a notable 17.4% quarter-over-quarter surge in new manufacturing leasing activity, indicating promising growth prospects for the portfolio. Senior figures at JLL’s Capital Markets Debt Advisory team, including Lucas Borges, Matthew Schoenfeldt, and Tara Hagerty, spearheaded the financing efforts.

Lucas Borges highlighted the unique investment opportunity presented by the portfolio, combining strategic geographic diversity, robust long-term tenant relationships, and a strong market position. This attractive investment package, alongside the institutional sponsorship’s industry expertise, made the portfolio stand out in the current capital markets landscape.

JLL’s Capital Markets division is a globally renowned provider of comprehensive capital solutions for real estate investors and occupiers, boasting a vast network of over 3,000 specialists across nearly 50 countries. Beyond debt advisory services, the division offers expertise in investment sales, equity advisory, and recapitalization, leveraging both local market insight and global investor knowledge to deliver top-tier solutions to clients.

In conclusion, the successful financing of the Lower Terra Industrial Portfolio underscores JLL’s commitment to delivering innovative and effective capital solutions within the commercial real estate sector. The strategic alignment of the portfolio’s geographic diversity, stable tenant base, and market positioning bodes well for realizing significant returns on investment in the industrial real estate landscape.