A $240M Warehouse Portfolio Cleared at 74% Leverage

The Signal:

• A stabilized big-box portfolio drew ~74% leverage in a cautious credit market.
• Lenders are underwriting occupancy and asset class, not fear.
• The financing terms, not the price, are the real data point.

A Cannon Commercial affiliate paid $240M ($92.66/SF) for seven industrial buildings totaling 2,590,325 SF across Nevada, Illinois and Ohio, 92.6% occupied. It financed the purchase with a $177.5M mortgage, roughly 74% loan-to-value; a securitized note piece priced near 6.24%.

The mechanism is collateral confidence. At 92.6% occupancy across three markets the cash flow reads as durable, so the debt stack goes deep and prices reasonably even with the broader market cautious. Lenders are separating asset classes, not painting all CRE with one brush.

The structural read is that the credit market has a favorites list and industrial is at the top. The same institutions pulling back from office will fund three-quarters of a warehouse purchase, because the box either performs or it does not, and these do.

Implications: For owners of stabilized industrial, leverage is a tailwind. For developers, financeability now tracks occupancy more than location. For lenders, deep leverage on full boxes is the trade they still want.