Speedway Commerce Center Lands $756M Loan Package Led By Bank OZK
By Greg Cornfield March 18, 2024 12:25 pm
reprints
The development group transforming a former NASCAR racetrack in Southern California into a massive logistics project has secured construction financing to build out the first phase of the industrial park.
A fund sponsored by CBRE Investment Management, along with Ross Perot Jr.’s Hillwood Investment Properties, closed a $756 million financing package for the construction of the first phase of Speedway Commerce Center in Fontana, Calif., in the Inland Empire — the nation’s top industrial real estate market.
A source familiar with the deal confirmed that Bank OZK provided a $575 million senior loan, while BDT & MSD Partners provided the mezzanine portion.
Construction has already started on Speedway Commerce Center, and the first two buildings are set to be complete early next year. The full project entitled for up to 6.6 million square feet of logistics space, along with 185-foot concrete truck courts, and more than 100 acres for excess trailer parking underway at 9300 Cherry Avenue.
“We believe that this financing milestone is further confirmation of the market’s confidence in our strategy of developing Class A assets that will be crucial to meet occupiers’ evolving technology and operation needs,” CBRE IM’s Mary Lang said in a statement.
Hillwood put down $559 million to acquire most of the former Auto Club Speedway in San Bernardino from NASCAR in one of the biggest commercial real estate deals in the region last year.
Eastdil Secured arranged the most recent financing. CBRE’s Dan de la Paz, Eloy Covarrubias and Barbara Perrier are handling the leasing effort.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
