Value Add Industrial Investor Closes on Speculative Financing for the Acquisition of 67,000SF Vacant Warehouse in Montgomery County, PA
Spec Financing Lives On: Diligence Capital Advisors sources 70% LTC loan for acquisition of a 67,000 SF vacant warehouse in Montgomery County, PA
Based on reports from the lender, the loan closed within 60 days of a signed term sheet, which was confirmed by principals from Diligence Capital Advisors. The parties also jointly confirmed that the loan also was structured with an earn out for the borrower upon hitting stabilization and other agreed upon financial metrics.
The warehouse acquired was in poor condition, in need of capex but had great bones, excellent clear height, many loading docks and is well located as a last mile distribution center. The borrower-sponsor also had a strong track record of successful leasing of vacant industrial assets. The borrower intends to hire an industrial broker within 30 days to market the asset for lease.
"The notion that there is no spec acquisition financing for industrial deals is just wrong. If the sponsor has a proven track record of creating value and the deal pencils, the funds are out there. Luckily, our sponsor in this case has done this before multiple times so we were able to procure an investor-friendly loan facility that included an immediate release of acquisition/
The closing of the acquisition loan occurred on Friday November 20, 2020.
Page Updated Last on: Nov 27, 2020