Industrial Logistics Properties Trust has locked down a $1.6B CMBS loan to refinance a 90-property industrial portfolio, according to a Fitch Ratings presale report. Fitch projects the transaction will close May 13.

The portfolio backing the loan totals 19M SF across 57 markets in 27 states, primarily in the Sun Belt, Midwest and East Coast.

The portfolio was last appraised at $2.15B, making the loan-to-value ratio 75.3%.

The loan’s term is five years and has a fixed rate and interest-only payments. It comes with three consecutive one-year extension options. May 2031 is the fully extended maturity date, and a final distribution date is five years later.

Twelve senior notes totaling $832M, 12 subordinate trust notes worth $451M, and an additional $338M of 12 senior companion notes make up the loan.

Proceeds will go toward refinancing $1.6B of debt, covering $8.2M in closing costs and creating a $3.5M reserve for outstanding landlord obligations.

The properties are 96.3% leased with a 5.2-year average remaining lease term and are managed by RMR, which also manages ILPT. ILPT’s entire portfolio consists of 411 properties that total 60M SF.

Federal Express Corp., Amazon and Home Depot are the three largest of 36 tenants. Toyota, Jim Beam, Ulta Beauty and Winland Foods are also significant tenants in the portfolio. All tenants are leasing individual units that range from 12K SF to more than 830K SF.

A host of banks are originating the loan: Wells Fargo, Bank of America, Citi, UBS, Morgan Stanley and Bank of Montreal. Midland Loan Services, a PNC Bank division, is the servicer, and BSP is the special servicer.

Industrial CMBS delinquency rates held steady at 0.6% for the first three months of the year, according to S&P Global. The sector is the top performer when it comes to delinquency rates.

Overall, industrial is showing signs of stabilization now that deliveries are slowing and leasing is booming. Vacancy was 7% at the end of the first quarter, 10 basis points below its peak late last year. There were 174M SF of new leases signed during Q1, Cushman & Wakefield found.

Fitch expects loans moving to special servicing will increase this year across property types. Delinquencies are projected to jump from 3.5% in 2025 to 4.6% this year due to a higher level of maturity defaults, the presale report says.