3650 REIT Provides $145M in Construction Financing for Two SoCal Projects
$91M in financing will develop industrial facility and $54M will construct retail center
3650 REIT is busy to start the new year.
This week, the national commercial real estate lender originated a pair of loans worth more than $145 million for two developments in Southern California.
Chestnut Properties has secured $91 million in construction financing from 3650 REIT to build Gillespie Field iPark, a nearly 400,000-square-foot industrial facility in San Diego County, while Wood Investments Companies has secured $54 million in financing to construct The Ranch at Model Colony, a 200,000-square-foot retail development in Ontario, Calif.
In a statement, Jonathan Roth, 3650 REIT’s co-founder and managing partner, said the Gillespie project fulfills eastern San Diego County’s need for “sustainable and contemporary industrial space.” Roth added that The Ranch at Model Colony benefits from “a prime location” adjacent to Interstate 15, approximately an hour’s drive from Downtown Los Angeles and 90 minutes from Downtown San Diego.
“In a commercial real estate environment with little ground-up construction taking place, we continue to see strong demand for a variety of asset classes in strategic locations and desirable submarkets,” said Roth. “We’re delighted to work with outstanding local sponsors in Chestnut Properties and Wood Investments, both of whom have the domestic expertise to ensure these projects’ future success.”
Sitting on nearly 32 acres of land, Gillespie Field iPark is designed to have 380,000 square feet of industrial space and feature up to 31-foot clear heights, 650 parking spaces, and 34 trailer-storage stalls. While 40 percent of the industrial space has already been leased to GKN Aerospace, the property is being developed to accommodate manufacturing, warehousing, distribution and R&D businesses.
It’s the first large, Class A industrial project in the area in decades, according to Gantry’s Hillakas.
The Ranch at Model Colony will be built on 17 acres and is already 90 percent pre-leased to a variety of tenants that include McDonald’s, Planet Fitness, Ross Dress for Less and Chipotle Mexican Grill. The development is buttressed by the city of Ontario’s nearby Ontario Ranch, an 8,000-acre, master-planned residential community currently under development, and the Goodman Commerce Center, a 200-acre, 3.1 million-square-foot, mixed-use business district that opened in 2016.
“The Ranch at Model Colony will provide retail optionality for many different residents in the Ontario area,” Kadish said in a statement. “We’re excited to have successfully coordinated the capital for its construction, and look forward to building long-term relationships with both 3650 and Wood Investments.”
Brian Pascus can be reached at firstname.lastname@example.org