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Smithway Industrial

$12,000,000 Refinance

Commerce, CA | January 2020

Thorofare Capital has funded an Opportunistic, Short-term Bridge Loan for the acquisition of Smithway Industrial. The property is a 2004‐built, 74,050 SF distribution and warehouse facility located in Commerce, California.

The borrower utilized the loan to opportunistically acquire the property in an off-market, short-term sale leaseback transaction. The property was 100%-leased at the time of loan closing.

Smithway Industrial is located in a submarket that attracts warehouse and distribution tenants for its proximity to Downtown Los Angeles as well as the Alameda Corridor. External barriers to development, such as land availability and traffic congestion, make it difficult to build new facilities similar to the subject. Per CoStar, the industrial vacancy rate is 2.4% with rent growth of 4.3% over the past 12 months.

The fixed‐rate, interest‐only loan has a 24‐month initial term allows for flexibility on early prepayment in the event of a sale upon the tenant’s lease renewal.

The Orange County-based sponsor is a full‐service, real estate development and management company which owns and operates nearly 5 million square feet of commercial properties in the Western U.S.