Newmark Secures $525M Refinancing for Landlord of Net Leased Property Portfolio

Newmark has arranged a $525 million loan to the owner of a 6.8 million square foot, 100% net leased, national industrial portfolio that includes a large warehouse in New Jersey, according to an announcement Wednesday.

The borrower, SomeraRoad, secured the financing through Bank of Montreal in a broker-arranged transaction with Newmark. The agreement will support a portfolio of 50 properties that spans 27 states, including a 142,959 square foot industrial warehouse in Denville. All properties are net leased to single tenants, each serving what Newmark described as a core manufacturing or distribution function.

The Newmark team, relying on local licensees, was led by Jordan Roeschlaub and Dustin Stolly, along with Chris Kramer, Nick Scribani and Jake Neeb.

“It’s remarkable what the SomeraRoad team has been able to accomplish, aggregating and evolving a strong portfolio and building an impressive net rental platform in the process,” commented Roeschlaub. “The team has compiled a portfolio of leading industrial properties, acquiring and positioning these assets for success with ingenuity and top-notch management.”

Stolly added, “SomeraRoad has been very active in acquiring and expanding its portfolio of industrial net leases. The diversity and mission criticality of the properties, coupled with the continued favor of the industrial debt market, was evident in this execution.

Fully let with a weighted average lease term of nearly 13 years, the portfolio is highly diversified both in its geography and in the business sectors of its tenants. The wide range of corporate tenants enhances the high-end credit profile of the portfolio, with this economic diversity further supported by the tenants’ respective balance sheets and creditworthiness.

The properties are strategically positioned near busy public infrastructure, making each asset critical to their tenants’ established manufacturing/distribution operations. Each site is in excellent condition, having received significant recent capital investments made by the underlying tenants, ensuring that each property is well suited to its respective use – with a significant portion of the larger portfolio built over the last decade.