Capital One announced today that it served as administrative agent, sole lead arranger, and sole bookrunner for a $142.5 million senior secured term loan. The sponsor, a joint venture partnership between Taurus Investment Holdings and Venture One Real Estate, used the funding to acquire a portfolio of 51 Class B properties spread across Chicago submarkets in Illinois and Indiana. Venture One, which previously owned the portfolio, will continue to manage the properties, providing continuity in day-to-day operations.
The facility consists of an initial advance of $129.4 million and $13.1 million in capital expenditure and TI/LC holdbacks. The adjustable-rate loan has a term of 60 months.
“The extensive experience of the sponsorship team and the overall quality of these assets made for a compelling investment thesis,” said Lisa Greeley, Senior Vice President in Capital One’s Commercial Real Estate Group. “This transaction highlights our ability to commit at a sizeable balance sheet level and to follow our sponsors outside of our footprint.”
The 51 assets in the portfolio total over 2.9 million square feet, averaging 57,000 square feet per building. They are infill properties located in business parks or in locations with highway access. At closing the properties accommodated a diverse roster of more than 180 tenants for a leased occupancy rate of 92.7 percent.
“Given the size of the portfolio and the number of its tenants, Capital One’s ability to go from signed term sheet to closing in just seven weeks was impressive,” said Lathan Allen, Managing Director with Taurus. “Whatever the issue, the team was ready to work hard and come up with a creative solution to resolve it.”
Founded in 1976 and headquartered in Boston, Taurus Investment Holdings is a global investor, developer, owner, and operator of real estate with operations in 15 markets and four continents. Since inception, Taurus has purchased and sold more than 25 million square feet of industrial, residential, office, retail, and other commercial real estate assets throughout the world, with a total acquisition value of over $5 billion. This is the ninth and final investment by the firm’s Taurus U.S. Logistics Property Fund.
Venture One is a real estate private equity fund manager, developer, and operating company specializing in industrial properties in Chicago and the Midwest. It manages over 7 million square feet of real estate and controls over 1,100 acres of land in corporate business parks in the Chicago area. Venture One compiled the portfolio with both scale and diversification in mind.