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Industrial Outdoor Storage
$8,500,000 Acquisition Financing
Chicago, IL | October 2021
Thorofare Capital has funded an $8,500,000 floating rate first mortgage for the acquisition of the I-55 Portfolio, including two Industrial Outdoor Storage and Cross-Dock Truck Terminal properties.
Additional future-funding from the bridge loan will be utilized towards the renovation and lease-up of this two-property portfolio. The industrial storage yard asset consists of over 8.5 acres of leveled dirt that is currently being used as container storage while the truck terminal asset includes a 34,517 square foot cross-dock warehouse.
The Sponsor plans to make the properties more functional by investing\into building improvements, dock improvements and additions, as well as lighting and security improvement, as well as landscaping, fencing, and lighting improvements property.
Truck and logistics real estate have grown to be in high demand over the last 24 months from the loan origination date, with the continued growth e-commerce and last mile distribution with vacancy compressing inside of 5.50% and rent growth more than 6.00% annually, according to Costar. The portfolio is located less than 7 miles from downtown Chicago in an infill location within the South Chicago submarket, and adjacent to I-55, a major interstate truck route. As a result, the properties are well situated for last mile distribution due to their proximity to downtown Chicago, I-55, and an intermodal train yard.
The interim, interest-only financing carries an initial loan term of three years with two extension options, which remain subject to performance tests. In addition to accretive future-funding, the structure offers flexible prepayment optionality.
The sponsor is a privately held, multi-billion-dollar, vertically integrated real estate investment platform that specializes in the investment development, and management of properties across all asset types in core urban markets around the globe totaling over 50 million square feet and gross asset values of $20 billion.