SkyREM Secures $170M Loan for 2.5M SF Industrial Portfolio Refinancing

SkyREM, a privately funded and managed real estate company, has successfully refinanced its 2.5 million square foot industrial portfolio with a $170 million loan through Apollo, arranged by JLL Capital Markets. This strategic move allows SkyREM to access capital, mitigate interest rate risk, and further expand its investment portfolio across the United States.

The refinancing deal, facilitated by JLL Capital Markets, involved a fixed-rate, five-year loan from affiliates of Apollo. This loan provides SkyREM with a stable cost of capital for the next five years, protecting the company from market fluctuations and ensuring a predictable financial environment for its long-term investment goals.

SkyREM's industrial portfolio spans across highly sought-after markets in the Northeast, Southeast, and Midwest regions of the United States. These markets benefit from strong labor markets, low unemployment rates, and positive population growth trends, making them attractive for industrial real estate investments. The portfolio consists of 10 buildings, totaling approximately 2.5 million square feet, and is 99% leased to 15 diverse tenants across various industries.



The refinancing comes at a time when the industrial real estate market is experiencing a shift. Despite a national pullback in industrial leasing since the pandemic highs, the Logistics & Parcel Delivery industry has been a top performer, driven in large part by increased Asian 3PL demand. In New Jersey, leasing volume in Q3 2024 reached the second greatest level of all time, tallying 14 million square feet. This strong demand for industrial assets suggests that investors and lenders remain confident in the sector's long-term prospects.



SkyREM's decision to refinance its industrial portfolio aligns with its core investment values, focusing on risk management, strategic expansion, and diversification. By securing a fixed-rate loan, SkyREM can better predict its future cash flows and plan for growth. The refinancing also provides SkyREM with additional capital to invest in strategic expansion opportunities, such as acquiring new properties, developing existing ones, or investing in value-add initiatives to enhance the portfolio's performance.

In conclusion, SkyREM's refinancing of its 2.5 million square foot industrial portfolio with a $170 million loan through Apollo demonstrates the company's commitment to strategic growth and risk management. This move allows SkyREM to access capital, mitigate interest rate risk, and further expand its investment portfolio across the United States, aligning with its long-term investment goals and asset allocation strategy.