SAN FRANCISCO (December 19, 2017) – A team led by managing director Nathan Prouty, senior vice president Dan W. Baker, and senior analyst Briana Harney, of NorthMarq Capital’s San Francisco regional office, arranged value-add acquisition financing of $21.3 million for Lathrop Industrial Center, a vacant 417,610 sq. ft. industrial property located at 17100 South Harlan Road in Lathrop, California. The transaction was structured with a 2-year interest only term. NorthMarq arranged financing for the borrower, Vertical Ventures, through a debt fund/bridge lender relationship.
Lathrop Industrial Center was originally developed by an owner-user in the mid-1980s and the site contains acres of excess undeveloped land in addition to the existing 417,610 sf manufacturing and distribution facility. Upon close of the acquisition the Sponsor plans on implementing a business plan that will extract full value from the Property. Components of the business plan will focus to both reposition the Property to lease to warehouse users as well as take advantage of the 17 acres of excess land.
Vertical Ventures is a privately-held real estate investment and development company focused on acquisitions of office, R&D and industrial properties in well-established California markets. Founded in 2004, Vertical Ventures has a demonstrated track-record in the greater Bay Area and has successfully executed a variety of value-add acquisitions.
“Vertical Ventures pursued the acquisition due to strong market dynamics in Lathrop,” explained Prouty. “They developed a creative value-add business plan and required a lender that would realize the additional value at the property and that would reliably close within a short time-frame. The lender stepped up to the plate by providing a competitively-priced non-recourse option that enabled the borrower to complete the acquisition and fund subsequent repositioning and lease-up costs.”