Majestic Realty Refinances Part of its Commercenter Industrial Portfolio
Allianz Real Estate, the world’s largest investor in real estate, has signed an agreement with Majestic Realty Co. to finance part of their 9-building industrial portfolio at Majestic Commercenter in Aurora. The nine non-crossed collateralized loans amount to $135 million and follow eight additional loans already provided to Majestic.
“As we continue to expand our lending footprint in the U.S,, we seek to partner with like-minded owners. We privilege long-standing client relationships, and we look to continue supporting those clients like Majestic who offer Allianz Real Estate growth opportunities through investing in prime real estate in excellent locations,” said Mike Cale, co-head of U.S. Debt, Allianz Real Estate.
As a result of the latest deal, Allianz Real Estate has a debt exposure to Majestic of $270 million across several loans in different parts of the country. The nine buildings of Majestic’s Commercenter, located five miles from DIA and ten miles from downtown, have an estimated gross leasable area (GLA) of 2 million square feet and a combined occupancy rate of 93 percent.
The property fits well with Allianz Real Estate’s focus on investing in core plus assets that can bring an upside in revenues as occupancy rates increase and consist stable cash flows over the long term. At the moment, seven of the nine buildings are at a 100 percent occupancy rate, while the remaining two require further improvement.
A regional home to some of the world’s largest, most respected corporations—including Amazon–the park delivers high-cube spaces from 20,000 square feet to 700,000 square feet in Class A industrial buildings. Currently, the park boasts over 7.5 million square feet, with total build-out of the Majestic Commercenter expected to reach 15 million square feet of industrial, warehouse and distribution facilities. At 1,500 acres, this property offers a variety of flexible development opportunities including corporate campuses, spec product and build-to-suits.
Rendering courtesy of Majestic Realty Co.