Dealmaker: Bellwether Enterprise Closes $42M for Industrial Assets

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.

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.