PCCP, LLC Provides $25.1 Million Senior Loan to PDC Memphis Oaks 3, LLC for Recapitalization and Lease-Up of Distribution Property in Memphis, TN
WASHINGTON, D.C. – July 18, 2014 – (RealEstateRama) — Holdings, LLC, a Class A distribution property totaling 1,025,000 square feet in Memphis, TN managed and sponsored by affiliates of Panattoni Development Company. The loan will recapitalize the existing financing, and will allow Panattoni to focus on leasing efforts on existing and future vacant space.
Developed in 2005 and 2007 by Panattoni, Memphis Oaks 3 is a bulk distribution facility that is cross-docked and includes 32’ clear height. The property is located at 3860 East Holmes Road and is 81.7 percent occupied. The property includes noteworthy tenants such as Sharp Electronics, GECAS Asset Management (a division of GE) and Franklin Sports.
“Panattoni is not only an experienced developer and owner, the company also offers a deep-rooted knowledge of the Memphis market, giving them a solid understanding of the key users in the region as well as their needs when it comes to seeking out quality industrial space,” said John Randall, senior vice president with PCCP, LLC. “This loan will provide the borrower the ability to continue to compete effectively in the Memphis market.”
Memphis Oaks 3 is part of Memphis Oaks Distribution Center, a master-planned industrial park developed by Panattoni between 2001 and 2007. The Memphis Oaks Distribution Center is comprised of a total of four industrial buildings totaling approximately 3.8 million SF. Two of the buildings Panattoni previously sold to investors. Including Memphis Oaks 3, Panattoni has developed approximately 16 million SF in the Memphis market alone and currently owns 4 million SF in the area. They are currently developing a one million-SF state-of-the-art distribution facility for Volvo as well as a 700,000-SF speculative warehouse in the Gateway Global Logistics Center in Marshall County, MS.
The distribution center is located approximately 12 miles southeast of downtown Memphis within the Southeast submarket, the main industrial/distribution corridor in the region consisting of more than 90 million SF of industrial product. Due to the product selection, the submarket bodes well for large, national users. Additionally, the submarket is home to Memphis International Airport, the second busiest cargo airport in the world, and is serviced by Interstates 69 and 240, providing direct access to key interstates including the 55 and 50.
Cushman & Wakefield advised Panattoni on the financing and is Panattoni’s leasing agent on the property.
About PCCP, LLC: PCCP, LLC is a premier real estate finance and investment management firm focused on commercial real estate debt and equity investments. PCCP has approximately $6 billion in assets under management on behalf of institutional investors. With offices in New York, San Francisco and Los Angeles, PCCP has a proven track record for providing real estate owners and investors with a broad range of funding options to meet capital requirements. PCCP originates and services each of its investments, ensuring that clients benefit from added value and outstanding investment returns. Since its inception in 1998, PCCP has successfully raised, invested and managed approximately $9 billion of institutional capital through a series of investment vehicles including private equit y funds, separate accounts and joint ventures. PCCP continues to seek investment opportunities with proven operators seeking fast and reliable capital. Learn more about PCCP at www.pccpllc.com.
About Panattoni Development Company: Headquartered in Newport Beach, Calif., Panattoni Development Company is one of the largest commercial real estate development companies in the world. Since inception, the company has developed more than 185 million square feet of space. The company is privately held and was founded in 1986. Panattoni has extensive experience in the development of industrial, office, retail and mixed-use facilities.
