JLL Arranges $718.2M Refinancing for Equus Capital Partners' 52-Property Phoenix Industrial Portfolio
PHOENIX, Oct. 14, 2026 – JLL Capital Markets has arranged $718.2 million in financing for Project Pegasus Industrial Portfolio, a 52-property, 5.2 million-square-foot shallow bay industrial portfolio owned by affiliates of Equus Capital Partners across the Phoenix metropolitan area, the firm announced Tuesday. Morgan Stanley and Bank of America provided the refinancing.
JLL worked on behalf of the borrower, affiliates of Equus Capital Partners Ltd., to secure a five-year, floating-rate financing package. The JLL Capital Markets team was led by President Kevin MacKenzie and Senior Director Jason Carlos, along with Associate Frank Choumas.
Financing Structure: SASB Execution and Balance Sheet Loan
The $718.2 million package consists of two components:
- A $527.1 million single-asset, single-borrower (SASB) execution, with Morgan Stanley as lead left and Bank of America as right lead.
- A $191.1 million balance sheet loan held by Bank of America.
The SASB component allows a large, single-borrower industrial pool to access the commercial mortgage-backed securities market, while the Bank of America balance sheet loan provides a second source of capital outside the bond execution. The financing equates to approximately $138 per square foot of collateral, a figure derived from the loan amount and portfolio size rather than a reported valuation.
Project Pegasus Portfolio Details
The portfolio comprises 52 light industrial properties totaling 5.2 million square feet and approximately 1,260 suites. The assets are located in the West Valley North, West Valley South, Airport, Deer Valley, Chandler, Mesa and Tempe submarkets of Phoenix. At closing, the portfolio was 92% leased.
The tenant base is diversified across manufacturing, logistics, distribution, construction, machinery, professional services, consumer products and technology industries, with no tenant representing more than a small portion of rental revenue.
The properties feature shallow-bay configurations designed to serve small and midsize businesses. Buildings range from approximately 29,000 square feet to nearly 259,000 square feet, with an average building size approaching 100,000 square feet. Clear heights average 20 feet, and the properties offer flexible suite layouts and loading capabilities. The portfolio's average vintage is 1992, with assets spanning established business parks and newer industrial developments built as recently as 2019.
The portfolio is positioned near Interstates 10 and 17, U.S. Route 60 and the Loop 101, Loop 202 and Loop 303 freeway systems. It also has access to Phoenix Sky Harbor International Airport, Phoenix-Mesa Gateway Airport and regional distribution corridors connecting Southern California, Nevada, Utah, Colorado and Texas.
Comment From JLL
"This transaction reflects the outstanding strength of Equus, the quality of this portfolio and their operational strategy," MacKenzie said. "The debt markets continue to present a deep pool of capital for well-sponsored, institutional-quality industrial portfolios, particularly in highly favorable markets like Phoenix."
Phoenix Industrial Market Context
The refinancing comes as Phoenix industrial conditions have improved from the market's recent oversupply period. Third-quarter 2026 vacancy was 9.7% by CBRE's measure, up 10 basis points from the prior quarter but down 150 basis points year over year. Net absorption reached 1.59 million square feet, and average asking rents rose 9% year over year.
Cushman & Wakefield reported a 10.3% overall vacancy rate in the third quarter, down 300 basis points from a year earlier. The market delivered 9 million square feet over the prior 12 months, 68% below the 2022–2025 annual average, while net absorption reached 20.5 million square feet. Third-quarter net absorption was 4.0 million square feet, with 13.6 million square feet year to date. Overall and direct asking rents rose to approximately $1.13 and $1.16 per square foot, respectively.
Performance varies by product type. Large-format facilities of at least 300,000 square feet had 5.1% vacancy, while mid-box properties of 100,000 to 250,000 square feet stood at 19.7%, despite a 340-basis-point annual improvement. Kidder Mathews placed total vacancy at 11.5% and direct vacancy at 10.3%, with third-quarter absorption of 2.85 million square feet and direct asking rents of $1.18 per square foot for spaces of at least 10,000 square feet. Differences among the figures reflect varying inventory, geography and reporting methodologies.
About the Parties
Equus Capital Partners is a national real estate investment manager and developer with more than 40 years of investment experience. Its portfolio consists of industrial, multifamily and office properties across the United States. The firm is headquartered in the Philadelphia area, with regional offices in Marina Del Rey, Scottsdale, Washington D.C., Atlanta, Raleigh-Durham and South Florida.
JLL (NYSE: JLL) reported annual revenue of $26.1 billion, operations in more than 80 countries and a global workforce of more than 112,000 as of June 30, 2026. Its Capital Markets group has more than 3,000 specialists worldwide with offices in nearly 50 countries.