Cronheim Mortgage arranges $6,200,000 for Oklahoma City FedEx facility
$31,600,000 for Monmouth Real Estate Investment Corporation (MREIC) & United Mobile Homes (UMH) in last 6 months
Oklahoma City, OK – Dev Morris and Andrew Stewart have arranged acquisition financing of $6,200,000 for a new distribution facility built to suit for FedEx Ground Package Systems, Inc. The 12-year fixed-rate loan was placed with American United Life Insurance Company, whom Cronheim represents as correspondent and servicing agent. The interest rate was locked in December 2011 for a forward commitment to fund the loan upon completion of the building and the tenant taking occupancy and paying rent.
The subject is a newly constructed 119,912 SF facility with 6,587 SF designated as office space. It is a pre-engineered steel structure with a standing seam roof, sprinkler system throughout, and 22’6” clear height. There are 34 dock high doors and 4 drive-in doors with capacity for expansion. FedEx Ground will utilize this facility as an automated warehouse and sorting/distribution hub for small packages in the Oklahoma City Region.
According to Dev Morris, “Through one of our correspondent lenders, we were pleased to be able to provide a forward commitment at an attractive fixed rate, allowing the client to place the property under contract well before completion of the building, which not only eliminated interest rate risk in a volatile market but also provided certainty of execution for the merchant developer.”
This is the third financing that Cronheim has secured on behalf of MREIC and UMH within the last 6 months. A first mortgage of $9,900,000 was arranged for a FedEx Global Supply Chain Services facility in Memphis, Tennessee, and placed with SunAmerica Life Insurance Company. They also arranged financing totaling $15,500,000 on five mobile home park communities, all of which are located throughout the Scranton and Bloomsbury areas of Pennsylvania. The borrower was an affiliate of United Mobile Homes (NYSE: UMH).
Monmouth Real Estate Investment Corporation (NYSE: MNR), which was organized in 1968, is a publicly-owned real estate investment trust (REIT) specializing in net-leased industrial properties subject to long-term leases primarily to investment grade tenants. MREIC’s current tenants include: Anheuser-Busch, Best Buy, Caterpillar, Coca-Cola, FedEx, Keebler/Kellogg’s, Mead Paper, and Sherwin-Williams. The Company’s property portfolio consists of 68 industrial properties and one shopping center located in 25 states, totaling approximately 8 million square feet of gross leasable area. In addition, the company owns a portfolio of REIT securities. Cronheim has financed numerous properties for MREIC as well as many other REITS.
According to Andrew Stewart, “Monmouth Real Estate, now a $426,000,000 total market cap company, is well positioned for continued growth. They have a conservatively managed balance sheet and an experienced senior management team that has worked together for many years. We are pleased to continue to play a role in the company’s growth.”