MDH Partners has secured a $160 million bridge loan from Acore Capital to refinance a portfolio of 10 warehouse properties across six states. The two-year floating-rate loan includes three one-year extension options for MHD's 2.1 million-square-foot industrial portfolio.
“The portfolio has strong in-place cash flow, and MDH is an institutional-quality, well-capitalized firm with deep experience in industrial acquisitions.”
$160 million two-year floating-rate bridge loan with three one-year extensions [Source 1]
Allocate to industrial bridge lenders like Acore for 200-300bps spread over SOFR; for equity, pursue MDH-like acquisitions in TX/CA at $200-250/sq ft with >90% occupancy for 6-7% unlevered returns
Highlights lender confidence in industrial assets amid high occupancy and cash flow; institutional investors may view this as entry point for value-add in Sun Belt and Midwest logistics hubs, but monitor extension options for potential workout scenarios
Floating-rate structure exposes MDH to SOFR volatility, potentially increasing debt service by 100bps if rates rise [Source 1]
MediumUtilize extension options only if occupancy sustains 95%+ and rents escalate 3% annually per WALT structure
Recent acquisitions like Chino at 91% occupancy vs refinanced portfolio's 100% could dilute cash flow if leasing lags [Source 2][Source 5]
LowPrioritize multi-tenant buildings in Inland Empire with e-comm tenants for quick stabilization via CBRE/Kidder Mathews brokers [Source 3]
Acore's CLO reliance on industrial loans amplifies sector correlation risk if supply surges in TX/CA [Source 6]
MediumDiversify into Salt Lake City assets as MDH did, targeting markets with <5% vacancy and strong demographics [Source 5]
End of Intelligence Report · 1 Sources Verified