2nd Holyoke Industrial Property

With its exclusive co-sponsor, Polaris Investments recently acquired a second industrial property in Holyoke, Massachusetts. 

The transaction consists in the acquisition and stabilisation of a circa 100,000 sqft industrial real estate. At time of the purchase, the property is fully vacant and the value-add comes from finding suitable tenants in order to eventually refinance.

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 a mix of  LP and GP equity. The transaction is particularly attractive given the low acquisition price that allows for significant upside even with a conservative amount of reserves priced in.

The deal is expected to be exited within the next 24 to 36 months after full stabilisation, while returning double digit IRR to Polaris investors.

Date of investment: June 2022