Thorofare Capital has provided a $14,000,000 floating rate senior loan for the cash in refinance of Rialto Village, a newly constructed 83,272 square foot Class A industrial warehouse and distribution facility located at 1505 South Willow Avenue in Rialto, California.

Completed in 2024, the property sits on 3.87 acres and features 32-foot clear heights, 17 dock high loading positions, one grade level door, a 125 foot fully secured truck court, 5,490 square feet of two-story office space, and 66 auto parking stalls. The building was developed on a speculative basis and is currently vacant. The facility is positioned within the Inland Empire, one of the country’s largest logistics corridors, though recent supply additions and broader economic conditions have temporarily increased vacancy levels across the market.

The sponsor plans to secure a short-term lease with a single tenant to generate interim cash flow and keep flexibility to either renew at higher rents or re-leasing the building as the market improves. The property is considered turnkey with limited expected tenant improvement needs. Thorofare structured additional TI and leasing commission reserves to support lease up efforts and strengthen negotiating leverage with prospective tenants.

Loan proceeds were used to retire an existing construction loan, fund reserves for tenant improvements and leasing commissions, establish a cash collateral reserve, and cover closing costs. The interest only loan features an initial three-year term, providing runway for lease up and positioning the property for a refinance or sale upon stabilization. If the building remains vacant at maturity, an owner user sale is a realistic alternative, given demand for modern industrial facilities in this size range.

The sponsor is an experienced industrial developer and investment partnership with a long-track record of delivering Class A warehouse and distribution assets across Southern California.