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Dealmaker: Bellwether Enterprise Closes $42M for Industrial Assets
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Bellwether Enterprise Real Estate Capital LLC, Cleveland, closed two loans totaling $41.5 million for distribution centers in southern California and Pennsylvania.
Executive Vice President Shelley Magoffin and Senior Vice President Max Sauerman in Bellwether Enterprise’s Los Angeles office arranged the loans.
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Magoffin called the transactions examples of the excellent loan terms available for well-located, high-quality warehouse buildings. “Industrial buildings with minimal office build-out are commanding the best terms available and with the increased competition comes extremely low interest rates, somewhat higher leverage, more interest-only and prepay flexibility,” she said.
The loans included $20.5 million for Commerce Lane in Easton, Pa. Life insurance company Thrivent Financial, Appleton, Wis., supplied the 16-year fixed-rate loan for two adjacent bulk distribution buildings. The new loan paid off existing construction loans and returned some borrower equity.
The non-recourse loan will remain interest-only for the entire term. The sub-50-percent loan-to-value ratio loan also included release and substitution of collateral provisions. It closed in the high 2-percent range.
In the second transaction, Montpelier, Vt.-based National Life Group supplied a $21 million acquisition loan to borrower Cohen Asset Management, Los Angeles. A brand-new distribution building at 10500 S. San Pedro Street in Gardena, Calif. secured the 12-year non-recourse loan.
The subject property is leased as a “last-mile” distribution building. The interest rate for the 12-year non-recourse loan was fixed with the signed loan application at just under 3.0 percent. The loan is interest-only for the first 10 years with step-down prepay flexibility for its remaining years.