Key Takeaways
- • Makarora Management and Ares Alternative Credit Funds secured $1.46 billion in CMBS acquisition financing to complete their $2.1 billion all-cash purchase of Plymouth Industrial REIT, closed January 27, 2026, with the joint venture contributing $660 million in equity.
- • The financing represents the largest single-borrower industrial CMBS transaction in two years, structured as a two-year floating-rate interest-only loan with three one-year extension options, originated by Citi Real Estate Funding, Goldman Sachs, and Morgan Stanley.
- • The underlying portfolio comprises 145 industrial properties (227 buildings) totaling 32.1 million square feet across 11 states, with strategic positioning within one day's drive of 70% of the U.S. population and 92.3% occupancy across 500+ distinct tenants with no single tenant exceeding 2.4% of rentable area.
- • Geographic concentration is weighted toward Midwest assets: Ohio represents 36.9% of allocated loan amount, Tennessee 15.4%, and Indiana 12.4%, reflecting Makarora's strategy to capitalize on strong industrial demand from major population centers.
- • Plymouth shareholders received $22 per share in the transaction, with the financing including ancillary components of $164.9 million term loan, $161.6 million tax equity bridge loan, and $29.4 million in letters of credit.
Summary
Makarora Management and Ares Alternative Credit Funds have secured $1.46 billion in commercial mortgage-backed securities acquisition financing to complete their purchase of Plymouth Industrial REIT, according to a Fitch Ratings presale report. The all-cash transaction, valued at approximately $2.1 billion, closed on January 27, 2026, with Plymouth shareholders receiving $22 per share. The joint venture contributed $660 million in cash equity to facilitate the acquisition.
The financing structure represents the largest single-borrower industrial CMBS transaction in two years, according to CoStar data. Citi Real Estate Funding, Goldman Sachs, and Morgan Stanley are expected to co-originate the two-year, floating-rate, interest-only mortgage, which includes three one-year extension options. The loan package incorporates a $164.9 million term loan, $161.6 million tax equity bridge loan, and $29.4 million in letters of credit.
The underlying industrial portfolio consists of 145 properties comprising 227 buildings across 32.1 million square feet in 11 states. As of the February 2026 rent roll, the portfolio was 92.3% leased to more than 500 distinct tenants, with no single tenant representing more than 2.4% of net rentable area. Royal Canin, the largest tenant, accounts for 1.8% of base rent. Geographic concentration favors Midwest and East Coast assets, with Ohio accounting for 36.9% of the allocated loan amount, Tennessee 15.4%, and Indiana 12.4%.
Fitch analysts noted that Plymouth's properties are strategically located within one day's drive of 70% of the U.S. population, positioning the portfolio to capitalize on strong industrial demand from major population centers. Chad Pike, chief investment officer of Makarora, emphasized in an October statement announcing the proposed deal that the cost-competitive Midwest and East Coast industrial properties are "well positioned to capitalize on strong industrial demand from these major population centers." The portfolio's diversification across 11 states and 500+ distinct tenants mitigates tenant concentration risk.
The financing structure represents the largest single-borrower industrial CMBS transaction in two years, according to CoStar data. Citi Real Estate Funding, Goldman Sachs, and Morgan Stanley are expected to co-originate the two-year, floating-rate, interest-only mortgage, which includes three one-year extension options. The loan package incorporates a $164.9 million term loan, $161.6 million tax equity bridge loan, and $29.4 million in letters of credit.
The underlying industrial portfolio consists of 145 properties comprising 227 buildings across 32.1 million square feet in 11 states. As of the February 2026 rent roll, the portfolio was 92.3% leased to more than 500 distinct tenants, with no single tenant representing more than 2.4% of net rentable area. Royal Canin, the largest tenant, accounts for 1.8% of base rent. Geographic concentration favors Midwest and East Coast assets, with Ohio accounting for 36.9% of the allocated loan amount, Tennessee 15.4%, and Indiana 12.4%.
Fitch analysts noted that Plymouth's properties are strategically located within one day's drive of 70% of the U.S. population, positioning the portfolio to capitalize on strong industrial demand from major population centers. Chad Pike, chief investment officer of Makarora, emphasized in an October statement announcing the proposed deal that the cost-competitive Midwest and East Coast industrial properties are "well positioned to capitalize on strong industrial demand from these major population centers." The portfolio's diversification across 11 states and 500+ distinct tenants mitigates tenant concentration risk.
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