Industrial - Debt

NorthMarq Capital’s Los Angeles office arranges $47.8 million bridge financing for Hines

LOS ANGELES (January 22, 2018) – NorthMarq’s Los Angeles regional office arranged $47,800,000 in non-recourse financing on a 414,309 sq. ft. vacant warehouse located at 515 E. Dyer Road in Santa Ana, California. NorthMarq was engaged by Hines, the international real estate firm, and the NorthMarq team was led by Mike Elmore, senior managing director; Joe Giordani, vice president and John Marshall, vice president.

Hines acquired the property in December 2017 and plans to renovate and reposition the vacant warehouse into a last-mile distribution center.

515 E. Dyer is one of Southern California’s most desirable and largest industrial properties, less than three miles to both John Wayne Airport and Orange County’s best performing mall, South Coast Plaza.

The property was formerly a manufacturing and distribution facility and features 22’ clear heights, 120’ truck turning clearance, an office pod, and excellent access to the 55, 5, and 405 freeways.

“The OC industrial story is one of the country’s best. Conversions to apartment, office and home-building uses coupled with limited coastal dirt makes Dyer one of the last large, infill warehouse sites in Southern California. Our team has had substantial interest from both tenants and users since we gained control of the asset, and with limited product coming online we’ve already seen that demand increase,” said Ray Lawler, senior managing director of Hines.

The loan features an attractive rate at 65 percent of total project cost, with a five-year term. NorthMarq shopped the non-recourse loan to both banks and debt funds.

“NorthMarq called on long-standing relationships to execute a challenging transaction with a short-fuse. We were able to bring in pricing to a very competitive level and find a trusted non-bank lender who understood the real estate. We think Hines pulled off the OC industrial deal of the year,” said Giordani.

As a capital markets leader, NorthMarq offers commercial real estate investors access to experts in debt, equity, investment sales, and loan servicing to protect and add value to their assets. For capital sources, we offer partnership and financial acumen that support long- and short-term investment goals. Our culture of integrity and innovation is evident in our 60-year history, annual transaction volume of more than $14 billion, loan servicing portfolio of more than $61 billion and the multi-year tenure of our nearly 600 people.