When prominent full-service Atlanta commercial real estate firm Ackerman & Co. began to seek financing for one of the largest bulk distribution center projects in the booming Jackson County, Georgia, business corridor, there were few banks willing or able to develop a lending solution that would bring the project to fruition.
Ackerman & Co.
Ackerman & Co. was planning to develop a remarkable new property: the Braselton Logistics Center – a 100,000,000+ square-foot bulk distribution facility positioned on 107 acres in the heart of arguably the largest industrial tenant submarket in the Southeast. Located 53 miles northeast of downtown Atlanta, Braselton and surrounding towns had begun attracting a multitude of household brand name tenants due to the area’s logistics potential. And as Ackerman & Co. President Kris Miller keenly points out, “there are just a handful of bulk projects delivering in the next year and only two are over 850,000 square feet.”
For the Braselton Logistics Center, Ackerman & Co. planned to construct a distribution facility that would exceed 1,000,000 square feet in size and feature 40-foot clear heights, ductilcrete floors, plus extra trailer and car parking. The quality and size of the future facility would require a significant investment to construct and that was an obstacle that Ackerman & Co. needed help to address.
Kris Miller met with The PrivateBank’s Brad Barton in our Atlanta office to hear about the opportunity in Braselton. The PrivateBank had considerable experience in the Atlanta commercial real estate market and understood the opportunity. While the credit required for the project was significant and crafting a traditional lending structure was unlikely, The PrivateBank was able to forge the shared trust, vision and purpose with Ackerman & Co. for the project that finally made the right lending solution possible.
“We were very pleased with both the execution and timing delivered by The PrivateBank. Brad did a great job beginning our relationship with a challenging deal. We recognize that and will do more with The PrivateBank in the coming months.”
-Kris Miller, President, Ackerman & Co.
Solving For X
Ultimately, The PrivateBank was able commit to the construction loan without a participationcontingency, which was decisive in reaching a deal with Ackerman & Co. and breaking ground on the Braselton Logistics Center.
To cover the full $31 million Ackerman & Co. required for the construction loan, The PrivateBank’s commercial real estate group tapped The PrivateBank’s Loan Syndications team for its specialized expertise in raising capital for non-traditional financing needs.
The PrivateBank’s Syndications group leveraged its network of trusted lending institutions to arrange a credit facility with two additional banks. The Syndications group structured and executed the credit facility in a way Ackerman & Co. had not originally
contemplated and as of March 2016, financing was finalized.