TPG Refis Industrial Portfolio With $408M CMBS Loan

Interior of an industrial warehouse.

TPG has landed a $407.5M CMBS loan to refinance one portfolio and snap up a new one.

Originated by Bank of America and Goldman Sachs, the mortgage is backed by 3.7M SF across 50 industrial assets and a single swath of land, according to Fitch Ratings.

The original portfolio spans 38 properties last appraised at $596.4M, making the loan-to-value 68.3%, CommercialSearch states.

Proceeds from the loan, as well as $56.7M of equity, will refinance $298M of existing debt within the portfolio. The loan will also be used to acquire a $156M Nashville portfolio comprising 13 industrial properties, and $1.6M is going toward outstanding landlord payments and closing costs.

The 38 assets were purchased between 2022 and 2023. They are spread across El Paso and Austin, Texas; Spokane, Washington; Winston-Salem, North Carolina; and Boise, Idaho.

The two-year loan is interest-only and floating rate, with three options for a one-year extension. Keybank is the special servicer, and Midland Loan Services is the servicer.

TPG has $261B assets under management, a 14% increase from last year, according to its second-quarter earnings report.

Its earnings have turned around significantly, with $30M of net income in Q2 as opposed to a $58M net loss at the same time last year.

That is despite weakening in the industrial market. Industrial asking rents saw their slowest increase in Q2 since 2020, growing only 0.1%.

Tariff uncertainty is still looming over the market, and enthusiasm for e-commerce has depleted significantly. Absorption and construction numbers are declining now that a wave of deliveries is beginning to come online, signaling a correction period is underway.

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