NorthMarq’s San Diego office arranges $15.5 million construction-to-permanent loan for PepsiCo industrial build-to-suit in San Diego, California

SAN DIEGO, CALIFORNIA (September 28, 2020) – Steve Hollister, senior vice president of NorthMarq’s San Diego office, arranged a $15.5 million construction-to-permanent loan for a 125,865 sq. ft. industrial building located in San Diego, California. The property is a build-to-suit for Pepsi. The transaction was structured with an 11.25-year loan term. NorthMarq arranged the financing for the borrower through its correspondent relationship with a life insurance company. The subject building will be a state-of-the-art concrete tilt-up distribution facility situated on 10.22 acres. 

“This construction-to-perm loan allowed the borrower to lock in a low interest rate and very favorable loan terms prior to the start of construction. The interest rate was fixed for the entire term at loan application with the construction loan period (15-months) being interest only. To maximize loan dollars, the lender provided a creative bifurcated loan structure with a 10/25 "A" Note of $14,000,000 and a 10/10 "B" note of $1,500,000. The lender also became comfortable with the fact that the parent company was not on the lease,” said Hollister.