First Citizens Bank Provides $52 Million in Financing for Egret Point Logistics Center in Boynton Beach, Florida

Rhea-AI Summary

First Citizens Bank has announced a $52 million financing deal with Wheelock Street Capital and Foundry Commercial for the construction of the Egret Point Logistics Center in Boynton Beach, Florida. This facility, situated at 3800 S Congress Ave., will feature two Class-A industrial buildings totaling 457,110 SF, with 32-foot ceilings, 104 dock doors, four drive-in doors, and 539 parking spaces. The site benefits from its strategic location, 3 miles from the I-95 access points. First Citizens Bank's Commercial Real Estate team facilitated this financing, showcasing their expertise in the sector. Founded 15 years ago, Wheelock Street Capital has managed $11 billion in investments, while Foundry Commercial oversees a $4.3 billion development and acquisitions pipeline.

Positive

• $52 million financing deal secured with Wheelock Street Capital and Foundry Commercial.
• Construction of two Class-A industrial buildings totaling 457,110 SF.
• Strategic location 3 miles from I-95 north and south access points.

Negative

• None.

Insights

Financial Analyst

The financing of $52 million for the construction of the Egret Point Logistics Center is a notable development for investors tracking the industrial real estate market. This investment aligns with First Citizens Bank's strategic focus on commercial real estate, indicating their confidence in the growth of the logistics sector. With the logistics market showing strong demand, this project could yield significant returns.

From the perspective of a retail investor, it’s important to consider the long-term benefits of such projects. The logistics sector has been resilient, especially with the rise of e-commerce and the need for efficient supply chain solutions. The location of the Egret Point Logistics Center, being close to major highways, enhances its attractiveness to potential tenants, ensuring steady occupancy rates and rental income.

However, it's essential to be mindful of potential risks. Changes in interest rates or economic downturns could impact the project's financial performance. Investors should evaluate the broader economic indicators and market trends to gauge the potential long-term stability of such investments.

In summary, this financing deal indicates a positive outlook for the industrial real estate market, particularly in logistics, given its growth prospects and strategic location.

Market Research Analyst

The Egret Point Logistics Center's projected features make it a competitive addition to the logistics infrastructure. The 32-feet clear height ceilings and 104 dock doors are designed to attract large-scale logistics operations, indicating a focus on efficiency and scalability. Given the increasing demand for modern logistics facilities driven by e-commerce, such specifications are likely to be well-received by the market.

Retail investors should understand that the geographic positioning of the facility, close to I-95, is a strategic advantage. This access boosts the center’s connectivity, making it a critical node for distribution networks. This can lead to higher demand from tenants seeking enhanced logistics capabilities, potentially driving up rental prices and property value over time.

Moreover, the involvement of established entities like Wheelock Street Capital and Foundry Commercial brings a level of credibility and experience to the project, reducing execution risk. However, competition in the logistics real estate market is fierce and maintaining high occupancy rates will be key to ensuring the project's success. Investors should watch for market saturation and economic trends that could impact demand.

Overall, the project appears well-positioned to benefit from current market dynamics, but ongoing monitoring of market conditions is essential.

NEW YORK, June 26, 2024 /PRNewswire/ -- First Citizens Bank today announced that its Commercial Real Estate business provided $52 million in financing to a joint venture between Wheelock Street Capital and Foundry Commercial for the construction of Egret Point Logistics Center in Boynton Beach, Florida.

Located at 3800 S Congress Ave., Egret Point Logistics Center will consist of two Class-A rear-load industrial buildings aggregating 457,110 SF, featuring 32-feet clear height ceilings,104 dock doors, four drive-in doors, and 539 traditional parking spaces. The site is located roughly 3 miles from the I-95 north and south access points.

"Our new facility is situated in an excellent location within busy and growing market for logistics services," said Ted Elam, Principal, Foundry Commercial. "We appreciated the expertise of the First Citizens Commercial Real Estate team in securing this construction financing."

Wheelock Street Capital LLC is a private real estate investment firm based in Greenwich, CT and was founded by Merrick R. Kleeman and Johnathan H. Paul. Wheelock consists of a premier investment and asset management team since its inception 15 years ago. They have raised eight funds, representing $5 billion in capital commitments, and deployed over $11 billion in total value on behalf of well-known institutional investors.

Foundry Commercial's Development and Investments platform oversees one of the largest pipelines of ground-up development and acquisitions in the southern United States. Headquartered in Boca Raton, Florida, Foundry's development and investment platform is fully integrated with its services business and is currently invested in over $4.3 billion in joint ventures with institutional investors throughout the country.

"We are thrilled to work with the solid partnership between Wheelock Street Capital and Foundry Commercial," said Chris Niederpruem, managing director and group head for First Citizens Commercial Real Estate business. "This property serves a strong market that will help meet the needs of perspective businesses in the area."

"The combined strengths of Wheelock Street Capital and Foundry Commercial presented a tremendous opportunity to deliver strategic and comprehensive financial solutions to meet their business goals," said Juan Vives, managing director and relationship manager for First Citizens Bank Commercial Real Estate. "This transaction is a solid demonstration of our commitment to supporting our customers grow with their businesses and cultivating long-lasting relationships."

First Citizens Commercial Real Estate originates and underwrites senior secured real estate financing for single properties, property portfolios and loan portfolios.

JLL's Capital Markets team represented Wheelock Street Capital and Foundry Commercial in the transaction. Senior Managing Directors Steven Klein and Melissa Rose worked on the transaction on behalf of Foundry and Wheelock.

About First Citizens Bank
First Citizens Bank helps personal, business, commercial and wealth clients build financial strength that lasts. Headquartered in Raleigh, N.C., First Citizens has built a unique legacy of strength, stability and long-term thinking that has spanned generations. First Citizens offers an array of general banking services including a network of more than 500 branches and offices in 30 states; commercial banking expertise delivering best-in-class lending, leasing and other financial services coast to coast; innovation banking serving businesses at every stage; and a nationwide direct bank. Parent company First Citizens BancShares, Inc. (NASDAQ: FCNCA) is a top 20 U.S. financial institution with more than $200 billion in assets and a member of the Fortune 500™. Discover more at firstcitizens.com.

About Wheelock Street Capital
Wheelock Street Capital L.L.C. is a private real estate investment firm founded in 2008 by Merrick R. Kleeman and Jonathan H. Paul, two veteran real estate private equity investors, each with over 30 years of broad real estate transaction experience across all major asset classes and a desire to get back to hands-on investing. Wheelock has assembled a premier investment and asset management team and produced a 15+ year track record of demonstrated and consistent outperformance over industry benchmarks. Since inception, Wheelock has raised eight funds, representing over $5 billion in capital commitments and deployed over $11 billion in total value on behalf of well-known institutional investors. This includes $1.2 billion and $1 billion of capital that the Firm is currently deploying in its opportunistic/value-add vehicle and open-end long-term value vehicle, respectively.

About Foundry Commercial:
Foundry Commercial is a full-service commercial real estate services and investment company operating across the office, industrial, retail, multi-family, healthcare, religious, and not-for- profit asset classes and clients. Focused on the Sun Belt markets, Foundry is sustained by 2,900 associates operating from 12 markets, providing leasing and management on more that 68 million square feet and over 3,000 seniors housing units, typically executing over $2 billion in leasing, tenant rep, and investment sale transactions annually. Foundry's development and investment platform is fully integrated with its services business and is currently invested in over $4.3 billion in joint ventures with many of the best-known institutional investors in the country. For more information, visit www.foundrycommercial.com.

About JLL 
For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of $20.8 billion and operations in over 80 countries around the world, our more than 106,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAY^SM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.  

MEDIA RELATIONS:
Ella Bristow
(212) 461-5322
Ella.bristow@firstcitizens.com

 

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SOURCE First Citizens Bank

FAQ

What is the financing amount provided by First Citizens Bank for Egret Point Logistics Center?

First Citizens Bank provided $52 million in financing for the Egret Point Logistics Center in Boynton Beach, Florida.

Where is the Egret Point Logistics Center located?

The Egret Point Logistics Center is located at 3800 S Congress Ave., Boynton Beach, Florida.

What are the specifications of the Egret Point Logistics Center?

The center will feature two Class-A industrial buildings totaling 457,110 SF, with 32-foot ceilings, 104 dock doors, four drive-in doors, and 539 parking spaces.

Who are the joint venture partners in the Egret Point Logistics Center project?

The joint venture partners are Wheelock Street Capital and Foundry Commercial.

How far is the Egret Point Logistics Center from the I-95 access points?

The Egret Point Logistics Center is approximately 3 miles from the I-95 north and south access points.