Bridge Industrial Nabs $430M SoCal Industrial Refi Package
By Nick Trombola August 7, 2024 1:01 pm
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The Inland Empire’s industrial market is slowing down — long live the Inland Empire’s industrial market.
Chicago-based Bridge Industrial has landed a $430 million refinancing package toward its 2.2 million-square-foot warehouse compound at 12415 Sixth Street in Rancho Cucamonga, Calif., according to The Real Deal, citing reports from Fitch Ratings and KBRA.
Wells Fargo (WFC) provided $268 million in senior financing toward the complex, dubbed Bridge Point Rancho Cucamonga, but the name of the lender which provided $162 million in junior financing was not disclosed. Some $80 million of those loans were bundled into a seven-year commercial mortgage-backed securities deal, per TRD.
The new debt pays off $309 million in construction loans provided by Wells Fargo and Keybank (KEY), while also returning $118 million to Bridge and partners Banner Oak Capital and the Teachers’ Retirement System of Texas.
The developer and its partners completed construction on the complex last year, per TRD.
A representative for Bridge Industrial did not immediately respond to a request for comment.
Tenants at Bridge Point Rancho Cucamonga include Mexican grocery and department store chain Chedraui, which last year signed a 1.4 million-square-foot lease that ends in 2044, and supply chain management company CEVA Logistics, which is leasing about 745,000 square feet through to 2034.
After years of all gas and no brakes, demand for space in the country’s largest industrial submarket has cooled off so far this year, according to a recent market outlook by NAI Capital. The vacancy rate reached 7.2 percent this past quarter — its highest point since the end of the Great Recession — while the amount of vacant sublease space reached an all-time high of 13.1 million square feet.
Yet those factors could ultimately play into tenants’ and investors’ hands, as increases in the amount of available space provide more options and more negotiating flexibility.
Nick Trombola can be reached at NTrombola@commercialobserver.com.
