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4/22/26
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Xebec, on behalf of a privately held real estate joint venture, has secured a $40 mil permanent loan to retire maturing debt on two cross-collateralized industrial buildings in active Los Angeles industrial submarkets. Both recent vintage buildings are 100% occupied with different single tenant occupiers.
5370 Boyle Ave, Vernon (Photo: CoStar) |
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One of the properties, located at 5370 Boyle Ave in Vernon, is a 203k sf industrial building occupied by PODS in the key Mid Cities industrial submarket The other property, located at 10445 Glenoaks Blvd in Pacoima, is a 95k sf building used as a sound stage facility as part of the Quixote studios campus. Both assets are well positioned to serve as last-mile logistics facilities in these supply-constrained, demand rich environment if re-tenanting is ever necessary.
Gantry’s George Mitsanas, Principal, Bahman Mirhashemi, Senior Director, and Keegan Bridges, Associate, arranged the financing. The five-year, fixed rate loan was secured from an insurance company lender and features full-term interest only.
“Insurance companies remain a highly competitive source for attractive loan outcomes on high-quality industrial property in the current cycle,” commented Mitsanas. “For these recent vintage assets, qualifying in place rents at below market rates allowed us to align maximized loan proceeds with full-term interest only covenants to enhance cash flows. This is because both assets are uniquely positioned if necessary for a transition to a last-mile logistics use in a competitive market for modern buildings. While single tenant occupancy can often be a challenge when financing shorter remaining lease terms, many insurance lenders will also underwrite permanent loans to reflect market fundamentals and future rent growth potential when determining asset value in ‘senior stretch’ structures offering enhanced terms above current performance.”
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