INWOOD, WV—Distribution Centers of Americasecured a $21.85 million CMBS loan for a Class Awarehouse facility here. UBS Securities providedthe ten-year, fixed-rate financing at a 75%LTV.

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Cushman & Wakefield's Gideon Gil, SridharVankayala, and Suraj Ravi arranged thefinancing, representing Distribution Centers of America in thedeal.

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It is rare for a warehouse sale to be secured by CMBS financing,Gil tells GlobeSt.com. In this case, though, a number of factorslined up perfectly to attract not only UBS to the deal but otherCMBS lenders as well.

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For starters, the property is fairly large at 763,371-squarefeet. Located at 4925 Tabler Station Rd., it is just offInterstate-81and occupied by a single tenant that has an eight-yearterm left on the lease at a below market rent. The building wasconstructed in 1999 and expanded in 2005 to supportstate-of-the-art distribution technology and processes.

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Part of the reason CMBS isn't used for warehouse assets isbecause these facilities tend to be smaller and multi-tenanted, Gilexplained. Also the loan size is usually smaller as well, withborrowers turning to banks instead.

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"This asset is a single-use warehouse and it was large enough tointerest CMBS providers," he says.

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Also, there is a stronger appetite for industrial assets ingeneral in the market, which is also reflected in the CMBScommunity.

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"It wasn't just one lender interested in this loan – it was avery competitive process," Gil says. "A year ago I would have had adifferent perspective but now it is clear there is increasedappetite for both this product and leverage level."

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