With demand rising for industrial space, brokers were able to secure new financing for properties in Valencia and Van Nuys.
L.A.-based commercial lending services firm Continental Funding Group said it has arranged for $8.23 million in refinancing for three Class-A industrial buildings, including one in Santa Ana, totaling 105,000 square feet.
Continental Funding Group Director Eugene Rutenberg brokered a $4.48 million refinancing loan for two properties in Valencia and Santa Ana for a high net worth family that invests and develops. The properties had single, non-credit tenants with less than three years left on their leases, Rutenberg said, which lenders were not interested in at first.
But with industrial continuing to be one of L.A.’s hottest property types, the broker secured a refinancing loan with a 3.55 percent fixed rate of interest over 10 years with nearly no closing costs.
Continental Funding Group also arranged a $3.75 million bridge loan for a single-tenant owner/operator property in Van Nuys. The loan offers two years of interest-only financing, no prepayment penalty and a fixed interest rate of less than 8 percent. The deal closed in fewer than five days, Rutenberg said, thanks to the San Fernando Valley’s economic growth.
“The limited supply of industrial product, coupled with enormous demand from distribution and manufacturing tenants, is driving rental rates, resulting in increased lending activity for this property type,” Rutenberg said.