Newmark secures $525M refinancing for owner of net-leased properties portfolio 

Newmark arranged a $525 million loan to the owner of a national, 6.8 million-square-foot, 100% net-leased industrial portfolio, which includes a large warehouse in New Jersey, according to a Wednesday announcement.

The borrower, SomeraRoad, secured the financing through Bank of Montreal as part of a transaction arranged by brokers with Newmark. The deal will support a 50-property portfolio that spans 27 states — including a 142,959-square foot industrial warehouse in Denville. All properties are net-leased to single tenants, with each serving what Newmark described as a critical manufacturing or distribution function.

The Newmark team, leveraging local licensees, was led by Jordan Roeschlaub and Dustin Stolly, along with Chris Kramer, Nick Scribani and Jake Neeb.

“It is remarkable what the SomeraRoad team has been able to accomplish, aggregating and scaling a strong portfolio and building an impressive net-lease platform in the process,” Roeschlaub commented. “The team has compiled a marquee portfolio of industrial properties, acquiring and positioning these assets for success with ingenuity and best-in-class management.”

Stolly added: “SomeraRoad has been highly active in acquiring and expanding its industrial net-lease portfolio. The diversity and mission-criticality of the properties, coupled with the continued favorability of the industrial debt market, showed through in this execution.”

Fully leased with a weighted average lease term of nearly 13 years, the portfolio is highly diversified in both its geography and the industries in which its tenants operate. The wide range of tenant businesses enhances the portfolio’s top-of-line credit profile, with that economic diversity further supported by the tenants’ respective balance sheets and creditworthiness.

The properties are strategically positioned in proximity to highly trafficked public infrastructure, making each asset critical to the established manufacturing/distribution operations of their tenants. Each site is in great condition, having received significant, recent capital investment made by the underlying tenants, ensuring each property is well suited for its respective use — with a sizable portion of the greater portfolio constructed in the last decade.