Behind The Deal: How Mission Capital Helped Hackman Finance 1M SF In Industrial Acquisitions
Hackman Capital made waves a couple of weeks ago with the acquisition of a 195k SF industrial portfolio that includes two facilities within the Chicago city limits. Mission Capital was able to arrange financing for that pickup, as well as a 907k SF industrial portfolio of Hackman’s, with two loans totaling $19.4M.
Mission Capital director Gregg Applefield (pictured, with wife Tami) touted the highly attractive acquisition basis on the portfolio. It's 90% occupied, providing in-place cash flow. The location is ideal, as Chicago is the top industrial real estate market in the country and the portfolio has good geographic diversity, with assets in Chicago, Elgin and Alsip. The Chicago sites in the portfolio, additionally, are infill locations in rapidly gentrifying markets.
The two loans to Hackman are a $14.4M bridge loan for six properties in the 907k SF portfolio and a $5M loan for the 195k SF package. Gregg says the bridge loan, in lieu of permanent financing, offers Hackman the flexibility to sell assets as they stabilize, if it chooses that strategy. As occupancy rates grow and tenants sign leases for market rates, Hackman will have more options.
Gregg says the arrangement came about thanks to its existing relationship with Hackman arranging financing for projects in Sacramento and Los Angeles. Hackman was looking for opportunities in Chicago, and Mission Capital had experience in the area, having helped some refinancings and other acquisition and construction loans in the CBD over the past two years.