JLL Capital Markets arranged the financing for the acquisition and redevelopment of an infill industrial building in Milwaukie, OR
PORTLAND, Ore.– JLL Capital Markets announced today that it has arranged $12.3 million in bridge financing for the acquisition and repositioning of 2515-2517 SE Mailwell Dr., a 173,816-square-foot industrial warehouse and manufacturing building in the suburban Portland community of Milwaukie, Oregon.
JLL worked on behalf of the borrower, ScanlanKemperBard Companies (SKB), to place the three-year, floating-rate loan with a debt fund. Loan proceeds will fund the acquisition and future renovations.
SKB will be executing a comprehensive capital improvement plan to transition the asset into a highly functional multi-tenant industrial facility. The building was constructed originally in 1957 and was 9% leased at the time of closing. The renovated building will have nine dock-high doors, three grade-level doors, three reconfigured suites with office space and additional parking, along with maintenance and façade upgrades as well as improved site functionality.
Situated on approximately 6.7 acres, the one-building property is in the North Milwaukie Industrial / Innovation Area (“NMIA”), which has been deemed the business district that drives employment and economic development by the city of Milwaukie. 2515-2517 SE Mailwell Dr. is also in an infill location within the highly sought-after Clackamas/Milwaukie Industrial submarket, which, according to JLL Research, has a low 6.4% vacancy rate at the end of the first quarter of 2021.
The JLL Capital Markets Debt Placement team representing the borrower was led by Senior Managing Director Tom Wilson and Director Zach Kersten.
“We’ve already seen significant tenant activity on the property from a diverse pool of advanced manufacturers and industrial users looking for functional space close to Portland’s consumer and employment hubs, supporting our initial investment thesis,” said SKB Vice President of Acquisitions Brian Hughes-Cromwick.
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sale advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
About ScanlanKemperBard Companies
ScanlanKemperBard is a privately held real estate merchant bank based in Portland, Oregon. SKB acquires, manages and transforms commercial properties into profitable, risk-adjusted returns for select high-net-worth individuals, family offices, trusts and institutional investors.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion, operations in over 80 countries and a global workforce of more than 91,000 as of March 31, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated.