Holyoke Industrial Property
With its exclusive co-sponsor, Polaris Investments recently acquired an industrial property in Holyoke, Massachusetts.
The transaction consists in the acquisition and stabilisation of a 110,000 sqft industrial real estate. At inception, the property is already 70% NNN-leased, and the anchor tenant is a fast-growing company listed in the NYSE.
Polaris Investments structured and financed the capital stack with an healthy combination between a senior loan from a local bank, a mezzanine debt tranche provided by Polaris' network of investors and the balance in sponsor's equity. The high debt coverage ratio was the key-element in the transaction, allowing Polaris Investments to raise the mezzanine debt portion as investors were attracted to the high risk-adjusted returns.
The deal is expected to be exited within the next 24 months after full stabilisation, while returning double digit IRR to Polaris investors.
Date of investment: November 2021