Marcus & Millichap’s IPA Capital Markets announced on December 22, 2025 that it has arranged a $96.7 million, three‑year non‑recourse loan from Bank OZK to finance a portfolio of three industrial properties in Rockford, Illinois. The loan will consolidate two fully stabilized, mission‑critical buildings totaling 503,395 sq ft and support the construction of a third 155,000‑sq‑ft facility, all of which are leased to a global pharmaceutical services tenant with strong credit fundamentals.
The borrower, Craig Erdmier, a Northern Illinois‑based design‑build and construction‑management professional, is using the loan to expand his portfolio and strengthen logistics and distribution capabilities. The tenant, a global pharmaceutical services company, provides a stable, long‑term lease that mitigates occupancy risk and underpins the non‑recourse structure of the financing.
Bank OZK, which originated approximately $39.57 billion in new loans over the five years ending September 30, 2025 and limits new construction loans to $500 million, is providing the capital under a cross‑collateralized, non‑recourse facility. The structure limits the lender’s claim to the collateral, protecting the borrower’s other assets while giving the lender confidence in the high‑credit tenant and the mission‑critical nature of the properties.
The transaction underscores Marcus & Millichap’s growing footprint in the Midwest capital‑markets arena and its ability to secure large, non‑recourse debt for high‑quality industrial assets. "This transaction presented a rare opportunity to finance a sponsor‑developed industrial portfolio backed by a strong credit tenant with zero leasing risk," said Frank Montalto, managing director at IPA Capital Markets.
Rockford’s industrial market, anchored by its proximity to the Chicago Rockford International Airport and the Union Pacific Global III Intermodal Facility, continues to attract specialized, build‑to‑suit projects. The financing reflects broader demand for mission‑critical facilities in the pharmaceutical and life‑sciences sector, a trend that has driven robust occupancy and stable cash flows in the region.
The deal demonstrates how a well‑structured, non‑recourse loan can support the expansion of high‑credit, mission‑critical industrial properties, reinforcing confidence in the industrial sector’s resilience amid broader commercial real‑estate headwinds.
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