Los Angeles, CA – iBorrow, a nationwide private direct lender for commercial real estate, today announced the closing of a $46.58 million refinancing for a 2,166,600 square-foot, six-property industrial and office/flex portfolio owned by an institutional fund with more than $1.5 billion in commercial real estate assets.
“Conditions in the commercial real estate market have changed drastically in the past 18 months, making private direct lending an increasingly critical solution for borrowers facing loan maturities,” says Brian Good, CEO of iBorrow, who notes that $2 trillion of CRE debt is expected to mature in the next two years.
“This is a sophisticated sponsor with a strong track record who needed a more flexible funding solution to reach its goals. iBorrow was able to quickly conduct thorough due diligence and develop a customized package,” explains Good. “One unique aspect of the refinancing is that iBorrow was able to include release provisions – a rarity in the current market. This structure allows the sponsor to comfortably exit each property individually, supporting a successful full-cycle execution of the portfolio business plan. This environment, while challenging, gives borrowers and investors the opportunity to separate the advisors and lenders who are committed to – and capable of – helping them accomplish their business objectives from those who are not. This borrower has the capability to successfully execute on their business plan.”
The six properties are located across New York, South Carolina, Alabama and California, and collectively feature an occupancy of 91.2%.
The transaction was completed in conjunction with leading national CRE finance and advisory service firm Walker & Dunlop’s Riley Manke and Andrew Westling.
The properties currently feature a diverse mix of fifteen tenants with a favorable rollover schedule. Approximately 9.51% of the properties’ NRA (or 206,000 square feet) is leased to five credit tenants. The six properties also have a weighted average lease term of 5.18 years.
“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,” concludes 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.”