Brennan Investment Group, RGA Secure $59M Refinance on Newly Built Midwest Industrial Assets

JLL Capital Markets has successfully arranged a $59 million refinancing package for a trio of newly constructed industrial facilities spread across the Chicago and Cincinnati metropolitan areas. The loan, provided by a regional bank, underscores the enduring appeal of Class A industrial assets in the Midwest, particularly those with modern specifications and strong tenant rosters.

The portfolio, jointly owned by Brennan Investment Group and Reinsurance Group of America Inc., encompasses 647,717 square feet of industrial space across three buildings, all of which were delivered in 2023. According to REBusinessOnline, the five-year financing was arranged by a five-member JLL team led by Matthew Schoenfeldt, along with Lucas Borges, Brian Walsh, Michael Gurwin, and Christian Johnston.

Key Details

The refinanced assets include two properties located in Fairfield, Ohio, collectively known as Seward Pointe Commerce Park, and a single facility in Hoffman Estates, Illinois, marketed as The Ninety Logistics Center. The Chicago-area property accounts for 201,676 square feet of the total portfolio.

Each facility was built to modern industrial specifications, featuring:

• 32-foot clear heights
• ESFR sprinkler systems
• LED lighting equipped with motion sensors
• Concrete tilt-wall construction

Importantly for lenders, the portfolio carries no lease-up risk. All three properties are fully leased to a diversified mix of tenants operating in logistics, distribution, manufacturing, packaging, and thermal processing sectors.

Market Impact

This transaction offers several takeaways for commercial real estate professionals watching the Midwest industrial sector:

Premium on New Construction: The ability to secure a $59 million refinance from a regional bank speaks to the continued flight to quality among lenders. With 2023 delivery dates, these assets offer the modern specifications that distribution users now demand, making them significantly more financeable than aging industrial stock.

Midwest Remains a Logistics Hub: The selection of Chicago and Cincinnati is strategic. Chicago remains the nation's largest industrial market, while Cincinnati has emerged as a critical distribution hub due to its central location and access to major interstate corridors. Investors and lenders alike continue to bet on these markets as e-commerce and supply chain reshoring drive demand.

Diversified Tenant Mix Reduces Risk: The portfolio's tenant base spans multiple industries, providing a hedge against sector-specific downturns. For lenders and investors, this diversification—combined with full occupancy—creates a compelling risk profile that likely contributed to favorable refinancing terms.

Regional Banks Still Active: Despite broader concerns about regional bank lending in commercial real estate, this deal demonstrates that well-structured loans on quality assets remain accessible. The five-year term suggests confidence in the portfolio's near-term performance and the overall stability of the Midwest industrial market.