Ares Management Secures $563.9 Million CMBS Loan for Industrial Portfolio
Ares Management Corporation (ARES), through its subsidiary, Ares Industrial Real Estate Income Trust (Aireit), has successfully acquired a substantial $563.9 million in commercial mortgage-backed securities (CMBS). This funding is intended to refinance a robust portfolio that includes 37 properties totaling 7.4 million square feet dedicated to industrial use.
Key Details of the Financing
The financing details were first reported by Commercial Mortgage Alert. A collaboration of major financial institutions, including Morgan Stanley, Deutsche Bank, and Goldman Sachs, is behind the origin of this five-year, floating-rate CMBS loan. The loan structure allows for a two-year term with options for three one-year extensions.
Transaction Arrangement and Structure
The loan arrangement was facilitated by a team from CBRE, consisting of Tom Rugg, Tom Traynor, Mark Finan, Steve Roth, Mark Fluent, Bill Moyer, and David Milestone. This CMBS will be securitized under the category ARES 2025-INDC-3, marking a significant addition to Ares Management’s financial undertakings in the real estate sector.
Portfolio Overview
The industrial portfolio spans nine states, focusing on twelve key markets, including Dallas, Atlanta, Chicago, Indianapolis, and Las Vegas. Among the properties included are:
- Northlake Logistics Crossing 1 in Northlake, Texas, leased by Mondelez International for 986,000 square feet.
- 4241 Plainfield Road in Indianapolis, under lease by C.H. Robinson for 754,000 square feet.
Financial Insights
The aggregate collateral value of the portfolio, which Aireit acquired between 2019 and 2024, stands at $911 million, generating a net operating income projected at $45.6 million. The loan-to-value (LTV) ratio for the newly secured CMBS package is approximately 61.9%.
Market Context and Comparisons
The announcement of the CMBS loan follows closely behind another significant CMBS SASB transaction, the BX Commercial Mortgage Trust, 2025-SPOT, which raised $1.3 billion for industrial properties and data centers in five states. Interestingly, both transactions saw the AAA bond class priced at 150 basis points over the Secured Overnight Financing Rate (SOFR), suggesting robust investor interest despite ongoing market volatility influenced by recent federal tariff policies. Notably, the S&P 500 and Dow Jones Industrial Average have seen declines of 12% and 11%, respectively, since March 20.
Recent Financing Trends for Ares Management
This latest financing is part of Ares Management’s active involvement in CMBS transactions over the previous year, which included:
- $590 million in CMBS from Citigroup, Barclays, and J.P. Morgan Chase in June, securitized under ARES 2024-IND.
- $475 million from J.P. Morgan, Morgan Stanley, and Natixis, securitized as ARES 2024-IND2.
Aireit’s Current Asset Overview
Currently, Aireit manages assets totaling $9.5 billion, reflecting its significant footprint in the industrial real estate market.
Comments from Financial Institutions
As of now, representatives from Ares Management, Morgan Stanley, Deutsche Bank, and Goldman Sachs have not commented publicly on this financing arrangement.
For further inquiries, Brian Pascus can be contacted at bp*****@co****************.com.
