BWE, a national commercial and multifamily mortgage banking company, announced today that it has secured $139,070,000 in first mortgage financing for a portfolio of 31 manufacturing properties totaling over 4.5 million square feet which span across the U.S. and include one property in Canada.
Kevin Hicks, senior vice president and Michelle Pericci, assistant vice president in BWE’s Philadelphia, PA office, secured 10-year CMBS financing with full-term interest-only payments on behalf of JB Poindexter and Co, a nationwide manufacturing company. By sourcing CMBS debt instead of the more traditional bank debt often utilized by industrial real estate owners, BWE was able to streamline the borrower’s access to mortgage financing and lower their long-term cost of capital.
“Seeking favorable financing terms for a portfolio of this size and makeup presents a number of challenges for sponsors—namely, a lack of interested lenders, since there is a tendency to look at manufacturing as a suboptimal asset class.” said Hicks. “The market fundamentals contradict that preconception, as retail and manufacturing continue to demonstrate strong performance. BWE worked tirelessly to secure financing that was quick—six weeks from application to closing—and provided the borrower with terms that were significantly cheaper than other solutions.”
The portfolio, comprised of 31 properties in 20 states and the Canadian province of Quebec, features light manufacturing facilities strategically positioned in areas across the eastern, southern, central, and western U.S. to allow for efficient distribution to customers. The properties are 100% occupied by owner-affiliated tenants and are used for truck body fabrication and assembly, as well as vehicle storage and servicing.