iBorrow provides $46.58m in refinancing for 2.1666m s/f multi-state industrial portfolio

Los Angeles, CA iBorrow closed on a $46.58 million refinancing of a 2,166,600 s/f, six-property industrial portfolio owned by an institutional fund with more than $1.5 billion in commercial real estate assets.

The properties in the collateral pool are located across New York, South Carolina, Alabama and California, and collectively feature an occupancy of 91.2%. The properties currently feature a diverse mix of 15 tenants with a favorable rollover schedule. Approximately 9.51% of the properties’ NRA (or 206,000 s/f) is leased to five credit tenants. The six properties also have a weighted average lease term of 5.18 years.

“Conditions in the commercial real estate market have changed dramatically in the past 18 months, as a result of which private direct lending is an increasingly important option for borrowers facing loan maturities,” said Brian Good, managing partner of iBorrow, who also notes that $2 trillion of CRE debt is expected to mature in the next two years.

“The borrower on this transaction is sophisticated, has a strong track record and needed a relatively quick and flexible funding solution,” said Good. “One unique aspect of this transaction is a structure that includes release provisions, enabling the sponsor to comfortably exit each property, while supporting a successful full-cycle execution of the portfolio business plan. This environment, while challenging, gives borrowers and investors the opportunity to be selective. This loan is attractive to us and we believe this borrower has the capability to successfully execute on their business plan.”

The transaction was completed in conjunction with leading national CRE finance and advisory service firm Walker & Dunlop’s Riley Manke and Andrew Westling.

“As we approach the end of 2023, it’s increasingly clear that adverse conditions will likely persist in the CRE space for the next 12 months or so,” said Good. “While this means that regional banks and other traditional financial institutions will continue to hang back, iBorrow is fully committed to providing borrowers, investors and entrepreneurs with the flexible, innovative funding solutions they will need in 2024 and beyond.”