Funding Purpose
Tauro was engaged to secure $35,000,000 of permanent financing for the construction take-out of West Coast Cold Storage’s headquarters. The financing included a cash-out component.
Property Description
The 124,300 square foot facility was completed in early 2022 using state-of-the-art technology and design. It is ideally located in Jurupa Valley, less than one mile from the Pomona Freeway (State Route 60).
Sponsors
The sponsor was able to construct the building in less than 18 months, an extremely quick timeline for a building of this size. West Coast Cold Storage is already filling up capacity quickly and is getting close to being 100% full.
Challenges
- The tenant had opened for business in January 2022, and the building was only about 20% full at application. While marketing the deal, the 10-year treasury spiked by over 1.00% in a 2-month span.
Solutions
- Tauro was able to successfully close the deal with a lender that was willing to lock the interest rate at application. The lender was able to get comfortable with a pre-stabilized building occupancy due to a depository relationship with the sponsor.
Funding
- Loan Amount: $35,000,000
- Interest Rate: 4.0% Fixed
- Loan-to-Value: 65% LTV
- Loan Term: 10 Years
- Amortization: 25 Years
- Origination Fee: 0.35%
- Prepayment: Stepdown
