Dealmaker: iBorrow Provides $6M Bridge Loan in Tampa, Fla.

(Photo courtesy of iBorrow)

iBorrow, Los Angeles, closed a $5.55 million bridge loan on a 59,250-square-foot, fully leased industrial building in Tampa, Fla.

iBorrow provided the 70% loan-to-value financing to sponsor, Reich Brothers, White Plains, N.Y., which owns and operates more than 15 million square feet of industrial properties throughout the country.

“While demand for industrial property and rent growth has slowed in some markets in the uncertain climate of the past couple years, Tampa is continuing to see incredible momentum,” iBorrow CEO Brian Good said. He cited a recent Avison Young report that found a 22.1% year-over-year increase in industrial asking rates in the fourth quarter.

Good added that a key component of the Sponsor’s strategy was leveraging an existing relationship with the building’s tenant.

“The tenant, who had an in-place lease at well-below market rate set to expire in April 2025, occupies another asset in the sponsor’s portfolio,” explains Good. “Based on the strength of the infill location and working relationship, the sponsor and tenant were able to negotiate a lease extension while under contract that was executed at acquisition. This is a win-win in which the tenant can stay at the property under trusted ownership, while the sponsor sees a significant increase in rental income.”

Good said the loan also provides a CapEx reserve that will be used for strategic improvements to the property as part of a long-term investment plan.

In addition to the warehousing and distribution facility, the asset includes additional land and parking, of which 86,249 square feet is currently leased to a separate tenant and used as industrial outdoor storage. With nearby access to the US I-4 and I-75 highways, the property is located near major distribution routes.

The non-recourse loan priced at a floating rate of SOFR plus 555 basis points. The term is 24 months plus one 12-month extension option, with interest-only amortization.