(To read more on the debt and equity markets and the industrial market, click here.)

SEAL BEACH, CA-Overton Moore Properties of Gardena has secured a $74.5-million construction loan from El Segundo-based Pacific Coast Capital Partners to finance the $110-million, 830,000-sf Gateway Business Center that Overton Moore is developing here. The project will comprise 10 light industrial and office buildings on a 44-acre site at the intersection of Seal Beach Boulevard and Westminster Avenue that Overton Moore acquired from Boeing Realty Corp.

Michael Nagin, principal of Pacific Coast Capital Partners, says that the lender sees demand for the space because the Orange County industrial market is “extremely deep,” with more than 245 million sf and a vacancy rate of approximately 3.5%. Finding sites to develop new industrial buildings “is becoming increasingly difficult,” Nagin points out.

In addition, most of the industrial space in the neighboring submarkets is older, and the new buildings that have been delivered has sold out immediately, adds Hal Pohl, a VP with Pacific Coast.

The first phase of Gateway Business Center will total approximately 518,000 sf in six buildings and is slated for completion in November 2006. Completion of the entire project is anticipated for July 2007.

Overton Moore says that the new business park is designed for tenants who need to consolidate corporate business and operations such as warehousing, distribution, light manufacturing and assembly.

The site will also accommodate tenants who need a greater proportion of office space. The development site is both rare and well located, according to Timur Tecimer, president and COO of Overton Moore Properties. He cites the “extreme demand for new industrial space” in a West Orange County market where the vacancy rate is approximately 3.4%.

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