Industrial Logistics Properties Trust has closed on a $350 million mortgage loan that matures in November 2029. The loan is secured by a portfolio of 11 of ILPT’s mainland properties located in eight states containing approximately eight million square feet.
According to a prepared release, ILPT’s cost basis in this portfolio of properties is $556.8 million, and as of September 30, 2019, the weighted average remaining lease term (by annualized rental revenue) for these properties was 7.1 years and occupancy was 100%.
The 10-year loan is non-amortizing and carries a fixed interest rate of 3.33% per annum, which is lower than the current borrowing cost on ILPT’s unsecured revolving credit facility. ILPT expects to use the proceeds of this loan to reduce outstanding borrowings under its $750 million unsecured revolving credit facility.
“We are pleased to take advantage of the current low interest rate environment to replace a portion of our floating rate debt with attractive long term, interest only, fixed rate debt,” said John Murray, ILPT’s President and Chief Executive Officer. “This financing increases our fixed rate debt to 79% of total debt, extends the average maturity of our debt to over 7.5 years, and provides positive leverage on this high quality mainland industrial portfolio.”
The loan was provided by Morgan Stanley, UBS Investment Bank and Bank of America. Tremont Realty Advisors acted as ILPT’s advisor and Sullivan & Worcester LLP provided legal counsel to ILPT in this transaction.
Industrial Logistics Properties Trust is a real estate investment trust, or REIT, that owns and leases industrial and logistics properties throughout the United States.