Bank OZK Leads $413M Construction Financing on Tacoma Logistics Project
By Andrew Coen March 18, 2024 3:02 pm
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Bridge Industrial has sealed a $413 million debt package to build a logistics park in Tacoma, Wash.
Bank OZK (OZK) supplied a $263 million first-mortgage construction loan on the sponsorship’s planned 2.48 million-square-foot Bridge Point Tacoma project. The senior debt featured a loan-to-cost (LTC) financing of 44.2 percent while the total $413 million loan has a 65 percent LTC, according to Bank OZK.
Investment funds managed by Mesa West Capital and Morgan Stanley Real Estate also co-originated five-year, interest-only $150 million mezzanine loan for the industrial development that will be six miles southwest of the Port of Tacoma. The mezzanine debt portion of the transaction was led by Mesa West Capital Executive Director Josh Westerberg along with Jack Condon and Jacob Rosen.
“There is very little supply in the greater Seattle-Tacoma industrial market that offers top-quality Class A bulk distribution product in a location such as this,” Westerberg said in a statement. “Bridge Point Tacoma will command premier rents in the marketplace.”
Will Milam, head of U.S. investments for Morgan Stanley Real Estate Investing, added that the industrial project is “one of the few developments of this scale likely starting this year.”
Eastdil Secured’s James Muhlfeld arranged the transaction.
Located at 5024 South Madison Street, Bridge Point Tacoma will consist of four warehouse and distribution buildings on a 136-acre site about 1.7 miles west of Interstate 5. The buildings, which will range from 335,000 to 960,000 square feet, will feature 40-foot clear heights and 130-foot trailer court depths.
Officials at Bridge Industrial did not immediately return requests for comment. Bank OZK declined to comment.
Andrew Coen can be reached at acoen@commercialobserver.com
