Dealmaker: Bellwether Enterprise Arranges $24M for Industrial Properties

Bellwether Enterprise Real Estate Capital, Cleveland, closed three deals totaling $24.1 million for industrial properties in southern California and Illinois.

Shelley Magoffin, Executive Vice President, and Vice President Max Sauerman originated the loans from the firm’s new Los Angeles office.

The deals included $9 million to refinance a Chicago-area warehouse/distribution building. The 700,000-square-foot cross-dock facility dates to the late 1990s and has 30-foot minimum clear heights and 120 foot truck courts.

Magoffin and Sauerman worked with the Los Angeles-based owner to refinance the existing loan almost three years prior to maturity. The existing loan included a yield maintenance prepayment premium but Magoffin and Sauerman identified a correspondent lender that could offer an interest rate that allowed the borrower to recapture the prepayment premium in less than two years, lower the annual debt service and keep the same amortization schedule so the borrower will own the property free and clear at the same time as the existing loan.

A life insurance company provided the non-recourse loan, which rate-locked at application, allowing the borrower to come back for secondary financing.

In California, Magoffin and Sauerman secured $8.1 million to refinance a newly constructed, 135,000-square-foot warehouse in the Inland Empire region. Shortly after completion the 30-foot clearance concrete building was leased to a start-up company with less than five years remaining on the contract. Magoffin and Sauerman sourced a life insurance company comfortable with the short-term lease, tenant quality and the limited amount of cash left in the deal.

The lifeco provided a 10-year loan with a 30-year amortization schedule in the low four percent range.

In Chino, Calif., Magoffin and Sauerman secured $7 million to refinance a cross-dock warehouse building. The 150,000-square-foot property is leased to a regional logistics company that stores hazardous and nonhazardous materials in the property. The team arranged a 15-year fixed-rate interest-only loan to refinance the maturing loan.