PHOENIX-A Las Vegas investor, looking to consolidate debt, has secured $19.1 million in a refinance of a 658,000-sf industrial portfolio in Greater Phoenix. The asset consists of 17 single- and multi-tenant buildings.
Tim Storey in Newmark Realty Capital, Inc.'s Phoenix office, arranged the deal on behalf of the underwriter, Great-West Life & Annuity Insurance Co. of Greenwood Village, CO. "This was to consolidate all those properties all under one loan," he says, adding the borrower has spent 20 years acquiring the entire portfolio. While the portfolio's value isn't being disclosed, Storey tells GlobeSt.com that the 10-year loan represents about 60% of the properties' value. The financing also has fixed-rate interest of 5.22% and 30-year amortization.
Storey says the low loan-to-value ratio created an obstacle with some lenders, but not for Great-West. "The lender didn't mind that these were older properties and was willing to do a 30-year amortization," he says. "The competition wanted to do a shorter amortization."
The buildings, 20 to 25 years old, are located in Mesa, Tempe, Phoenix and Glendale. They range from 16,000 sf to 18,000 sf. The portfolio is 92% leased.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.