The market for light industrial properties/ warehouse properties continues to experience sizable growth. With retail sales shifting away from brick-and-mortar locations and toward e-commerce, demand for light industrial/warehouse space has expanded and supply remains short. As a result, building values are climbing, vacancy rates are falling, and rents are increasing.
If you have a client looking to finance a light industrial/warehouse property, we can help. Stronghill Capital is a nationwide balance-sheet lender focused on ensuring financial stability and reliability for entrepreneurial real estate investors. We’re in the business of closing loans, even in the face of complex transactions.
A prime example of the Stronghill advantage:
Deal Highlights
- Loan Amount – $3,750,000.
- Interest Rate – 5.50%
- Term – 7 Year Fixed Rate Term, 25 Amortization
- LTV – 75%
- DSCR – 1.24x
- Broker Commission – $56,250
Recently a group of real estate investors purchased a light industrial property in Longwood, FL. The property consisted of 6 buildings, fully occupied by seven tenants that all operate businesses focused on the home building and construction trades. Unique to this particular transaction was the fact that the seller of the real estate was also an owner-occupant of the largest unit. In addition to and simultaneously with the purchase of the property, one of the sponsors executed on the acquisition of the seller’s operating business, which effectively made the property partially owner-occupied.
Stronghill listened to the story, underwrote the risk, and ultimately offered a favorable solution (a 75% LTV, purchase money mortgage of $3,750,000) that allowed all parties to achieve their goals.
We make loans on light industrial/warehouse properties in the amount of $500,000 to $10 million. Options are available for warehouses, distribution centers and industrial flex spaces – essentially everything that doesn’t fall into the category of heavy industrial/manufacturing category.
As with most other property types, Stronghill’s lending guidelines are flexible. This flexibility includes things like lower, than industry standard, DSCR requirements and higher allowable LTV’s. Generally, light industrial properties must be in average or better condition and have adequate remaining economic lifespans (in other words, longer than the amortization schedule of the loan). Similarly, properties must not be functionally obsolescent. For instance, the industrial building’s ceiling heights and docking dimensions must be adequate for the intended use.
Stronghill’s financing options for light industrial properties include 5, 7 and 10 year terms, with amortizations of 25 or 30 years.
Stronghill Capital is a national leader in providing borrower-friendly mortgage loans. We promise predictable processes, so you can feel confident that your deals will close on time. Our team is led by veteran real estate professionals, with billions of dollars of experience in lending and asset management.
At Stronghill Capital, we strive to protect our brokers’ and borrowers’ best interests. We do this by making the process faster, easier, and more efficient. To learn more about “The Stronghill Advantage” and how we can help you close more loans, contact one of our originators today.
