Data Centers Gone Wild: STACK's $4 Billion Green Financing Spree

[5 Minutes Read] Plus, When JPMorgan brings 11 friends to a $1.4B party

Author

Bridge Loan Guy
March 25, 2025

Good Morning Everyone

Welcome to your weekly CRE market update. We're breaking down the biggest deals and revealing the lending criteria that's driving them.

šŸ¢ Top Domestic & Global Deals
šŸ”¦ Deal Spotlights
šŸ‘¤ Lender Profiles
šŸ¤ Opportunities (Brokers, Lenders, Developers, Investors, and RE Agents)
šŸ“ New Loan Programs

Letā€™s dive in.

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If you want insights on top CRE active lenders and opportunities for your next deal.

Bridge Loan Guy
Top Loans of the Week

Largest single deal: $4 billion green/construction financing for STACK Infrastructure data centers

Lender of the Week: JP Morgan (led the syndicate for the $1.4 billion Hines Global Income Trust portfolio refinancing, which involved 12 banks total)

Sectors financed: Data Centers, Energy Storage, Solar, Multifamily, Mixed-Use, Industrial, Condominiums, Student Housing, Plastic Recycling

Lenders: EIB, Banco Santander, BNP Paribas, ING, JPMorgan, Lloyds, NatWest, Nordā€ÆLB, Virgin Money, SociĆ©tĆ© GĆ©nĆ©rale, National Bank For Financing Infrastructure and Development, Bank of America, Wells Fargo, Regions Bank, Truist, MUFG, SMBC, Barclays, HSBC, Bank OZK, InterVest Capital Partners, S3 Capital, Post Road Group, BMO Bank and SCALE Lending

TOP DEALS

STACK Infrastructure secures $4B for data centers in VA, OR, and Canada
STACK Infrastructure secured $4 billion in green financing for data centers across three markets, including a 1-gigawatt Virginia campus, following $9 billion previously raised, demonstrating the sector's rapid growth driven by AI computing. Read

Hines REIT Arranges New $1.4B Debt Facility
Hines Global Income Trust secured a $1.4 billion debt facility from JPMorgan, featuring revolving and term loan components with 1.4%-2.15% margins, showing improved lending for diversified portfolios with strong backing. Read

$334m Construction Financing for Two Michigan Solar Projects
NorthStar Clean Energy secured $334 million from three banks for two Michigan solar projects totaling 250 MW, with the Genesee County project featuring ESG metrics tied to financing in a historically disenfranchised community. Read

Global Market Spotlight
$2.8B Financing Secured for Pan-Asian Data Center Expansion 
Bridge Data Centres secured $2.8 billion from international banks for Asian hyperscale data centers, accelerating development in Malaysia, Thailand, and other markets to meet AI and cloud infrastructure demand. Read

AUD$453M Green Loan Secured for Queensland Solar Farm Development ACCIONA EnergĆ­a secured AUD$453 million from four major banks for the Aldoga Solar Farm, financing a 480MWp facility and funding regenerative agriculture programs for local farmers. Read

Emerging Trend
Ground lease financing continues growing rapidly as competitors challenge Safehold's dominance. These structures allow owners to monetize 40% of property value while maintaining control. Originally limited to urban properties, this financing now extends to suburban multifamily, industrial and retail assets as an alternative to mezzanine debt.

DEAL SPOTLIGHTS

Hines $1.4B REIT Portfolio Refinancing
ā—¾ Loan Amount: $1.4 billion
ā—¾ LTV: 50%-55% (estimate based on typical REIT financing)
ā—¾ Interest Rate: SOFR + 1.4% to 2.15%
ā—¾ Loan Term: 3 years with two 1-year extension options
ā—¾ Property Type: Diverse portfolio including industrial, living sectors, offices, and retail
ā—¾ Borrower Profile: $4.5B non-traded REIT

Baron PG $206M Miami-Dade Multifamily Development
ā—¾ Loan Amount: $206 million
ā—¾ LTV: Approximately 65-70% (estimate for ground-up multifamily construction)
ā—¾ Interest Rate: Estimated SOFR + 3.25-3.75% (estimate for similar construction loans)
ā—¾ Loan Term: Construction period through late 2027 plus stabilization (estimated 3+1+1 years)
ā—¾ Property Type: Multifamily 8-story, 661-unit development in Hialeah, FL
ā—¾ Borrower Profile: New York-based developer with a proven track record in the market (second partnership with lender after $148M first phase)

MCA Realty $52M Inland Empire Industrial Refinancing
ā—¾ Loan Amount: $52 million
ā—¾ LTV: Estimated 65-70% with substantial cash-out (estimate based on lender type)
ā—¾ Interest Rate: Fixed rate under 6.0%
ā—¾ Loan Term: 5-year, partial interest-only
ā—¾ Property Type: Industrial Park in Riverside, CA, with 123 roll-up doors, 3 dock-high doors, and 962 parking spaces
ā—¾ Borrower Profile: Experienced industrial operator with strong Inland Empire presence

What we are hearing

ā—¾ Data centers continue to command premium terms with lenders competing aggressively for deals in this space
ā—¾ Workforce housing in secondary locations near transit is emerging as a preferred multifamily thesis
ā—¾ Construction financing still flows in South Florida despite elevated interest rates.

LENDER PROFILES

Profile A: Commercial Mortgage Specialist
Focus: Construction & Refi Debt for large mixed-use/multifamily/industrial
LTV Range: 65-75% (Estimate)
Interest Rate: SOFR + 300-400 bps (Estimate)
Geographic Scope: National, with a focus on growing markets.
Deal Size: $40 million to $200+ million 
Key Criteria: Experienced developers, strong pre-leasing or absorption fundamentals, meaningful sponsor equity contribution, strong market demand, and well-defined project plans.

Profile B: Alternative Financing Provider
Focus: Multifamily/Retail/Industrial/Mixed-Use/Medical Office/SFR/Student Housing
LTV Range: Up to 7%
Interest Rate: 9.50 to 11%
Geographic Scope: Nationwide, min. population 100K, excluding NY/VT/MA/AK
Deal Size: $2M - $10M
Key Criteria: Short loan term (12-24 months), Light-Full Doc, value-add opportunities in industrial, multifamily, office, and single-family rental with flexible capital structure requirements, Rapid closing timeline (10-15 days possible)

NEED A BETTER OFFER FOR YOUR CRE DEAL? EMAIL [email protected], AND GET 1-2 LENDER INTRODUCTIONS

šŸ’” OPPORTUNITIES

  1. Brokers
    ā—¾ Target Battery storage developers, solar farm operators, and utilities exploring renewable infrastructure
    Referral Partners: Environmental consultants, renewable energy attorneys, and utility company development officers

  2. Developers
    ā—¾ Partner with local municipalities offering expedited approvals for workforce housing to reduce carrying costs
    Referral Partners: Economic development officials in growing secondary markets

  3. Investors
    ā—¾ Acquire and renovate smaller multifamily properties within walking distance of growing state universities
    Referral Partners: Local property managers specializing in student rentals

  4. RE Agents
    ā—¾ Host walking tours for potential investors highlighting connectivity, amenities, and development potential in mixed-use properties in emerging urban-adjacent neighborhoods
    Referral Partners: Urban planners and Local business improvement district executives with insider knowledge of upcoming investments

CRE 101

Term: Green financing
Definition: This loan funds sustainable real estate projects like STACK's $4 billion data center package. These loans typically offer 20-40 basis points better pricing plus potential higher leverage. Originally limited to office properties, they now extend to data centers, renewable energy, and industrial facilities.

NEW LOAN PROGRAM & LENDERS

ā—¾ 1st Commercial Credit expands receivablesā€‘based financing for Employer of Record companies Read
ā—¾ Cardinal Financial launches loan processing solution for mortgage brokers Read
ā—¾ SBA launches ā€˜Made in Americaā€™ initiative to boost domestic manufacturing Read

šŸ˜² DIDNā€™T SEE THAT ONE COMING

ā—¾ Greenpeace slapped with $660M damages bill over Dakota pipeline protests, CEO says "We'll appeal faster than you can say 'climate crisis'" Read
ā—¾ Defrauded investors sue CrowdStreet for a $1B IOU that wonā€™t go away Read
ā—¾ Forever 21 files Chapter 11, seeks buyer ā€“ because fast fashion is forever, but profits are not Read
ā—¾ Village Roadshow calls ā€œcut!ā€ and files Chapterā€Æ11 Read
ā—¾ Blue Owl Capital hands Navy Yard apartments to lender, local sailors now need new place to dock Read
ā—¾ Former retail mogul gets 5-year prison sentence for WeWork fraud, finally finds workspace with guaranteed occupancy Read

Lastly, no content provided by Bridge Loan Guy or Loans, Lenders & Leverage should be considered tax, investing, or financial advice. This email and any other content we provide are for entertainment and education purposes only. We do not claim to provide tax, investment, financial, or other legal advice. Any content provided by Bridge Loan Guy or Loans, Lenders & Leverage is the personal opinion of our owners and/or staff ā€“ you should always conduct your own research.