August 12, 2019– Mesa West Capital provided an $87.95 million five-year, floating rate debt package for the acquisition and lease-up of a recently delivered 1MM-square-foot industrial building in the Sycamore Canyon submarket of Riverside, CA. The Sponsor, a joint venture led by Los Angeles-based Dedeaux Properties, acquired the asset through a forward transaction. The Seller, an institutional industrial developer, delivered the property on July 11, 2019.
Situated on 52-acres of land, the cross-dock building features 147 dock-high doors, a 710-foot building depth, 185-foot secured concrete truck courts, and a 36-foot clear height. Given the property was being delivered vacant, the loan was capitalized with a future funding facility for leasing costs. The Sponsor plans to lease the building to a single user on a long-term basis.
“The Inland Empire is one of the top industrial markets in the nation with low vacancy rates, limited developable land, and significant barriers to entry resulting in high demand. These strong market fundamentals coupled with an experienced local owner and operator of a newly constructed institutional quality building made this a compelling and unique opportunity,” said Mesa West Vice President Danielle Duenas who originated the loan out of Mesa West’s Los Angeles office. “We’re continuing to look to finance industrial product in select markets, a space where bridge financing has not traditionally been utilized given the construction to perm dynamic and competitive landscape for this asset class,” Duenas added.