Dealmaker: MetroGroup Realty Finance Secures $27M for Industrial Assets
MetroGroup Realty Finance, Newport Beach, Calif., arranged $26.5 million in financing for three southern California industrial properties.
“Despite uncertainty driven by the year’s events, the capital markets are relatively stable and healthier than originally anticipated at the beginning of the pandemic,” said MetroGroup Vice President Ivan Kustic. “While lenders have certainly become more conservative in their underwriting and evaluate opportunities with increased scrutiny, they are still highly active.”
The firm arranged refinancing for the following properties:
–Film and Television Production Studios in Vernon
MetroGroup secured $15.5 million in bridge refinancing for this 270,000-square-foot flex, office and industrial building. The property is fully occupied by the owner’s start-up company, which provides studio space to film and television production companies.
Kustic said the borrower requested cash-out refinancing to retire the higher-rate maturing loan and provide working capital. “The borrower’s current loan was maturing in August, giving us less than 30 days to close,” he said. “We were further challenged by the fact that film and television production were non-essential industries and virtually shut down during our process. He said MetroGroup provided a first- and second-trust deed from two different lenders who recognized the value of this property in the historically strong Los Angeles industrial submarket and the sponsor’s strength.
–Distribution and Supply Warehouse in Montclair
MetroGroup also provided $7 million in permanent financing for a 100,000-square-foot industrial property occupied by the owner’s company, an automotive wheel and accessories supplier and distributor.
“The borrower wanted a fully amortizing loan to eliminate the need to refinance the property in the future,” said Kustic. “We were able to provide competitive non-recourse financing from one of our life insurance companies despite a bankruptcy filing for the company in 2011, which eliminated the majority of traditional banks.”
The 15-year fixed-rate loan priced at 4.0 percent with a 50 percent loan-to-value ratio.
–Automotive Repair Shop in Lake Forest
MetroGroup secured $4 million for a 30,000-square-foot industrial building leased to an automotive repair company in Orange County. Kustic said the private investor owner sought to refinance their current loan to take advantage of record-low interest rates with a $1.5 million cash-out request.
Kustic secured a non-recourse 10-year loan sized to 55 percent of property value. The loan closed at 3.5 percent fixed with a 25-year amortization schedule.
