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iBorrow Provides Acquisition Financing for Industrial Building Totaling More Than 59,200 Square Feet in Tampa, Florida

TAMPA, Fl – iBorrow, a nationwide private direct lender for commercial real estate, has announced the closing of a bridge loan to facilitate the acquisition of a 59,242 square-foot, 100%-leased industrial building in Tampa, Florida.

iBorrow provided the 70% loan-to-value financing on behalf of the Sponsor, Reich Brothers, an owner and operator of more than 15 million square feet of industrial properties throughout the country, according to Brian Good, CEO at iBorrow.

“We’ve successfully partnered with the Sponsor previously and were drawn to a superior business plan enhanced by their experience in owning and managing industrial properties,” says Good. “While demand for industrial property and rent growth has slowed in some markets in the uncertain climate of the past couple years, Tampa is continuing to see incredible momentum, with a 22.1% year-over-year increase in industrial asking rates in Q4 2023, according to a recent Avison Young report.”

Good adds that a key component of the Sponsor’s strategy was leveraging an existing relationship with the building’s tenant.

“The tenant, who had an in-place lease at well-below market rate set to expire in April 2025, occupies another asset in the Sponsor’s portfolio,” explains Good. “Based on the strength of the infill location and working relationship, the Sponsor and tenant were able to negotiate a lease extension while under contract that was executed at acquisition. This is a win-win in which the tenant can stay at the property under trusted ownership, while the Sponsor sees a significant increase in rental income.”

Good notes that the loan also provides a CapEx reserve which will be used towards strategic improvements to the property, as part of the long-term investment plan.

In addition to the warehousing and distribution facility, the asset includes additional land and parking, of which 86,249 square feet is currently leased to a separate tenant and used as industrial outdoor storage. With nearby access to the US I-4 and I-75 Highways, the property is ideally situated near major distribution routes throughout the state of Florida.

The $5.55 million non-recourse loan is priced at a floating rate of SOFR plus 555 basis points. The term is 24 months plus one 12-month extension option, with interest-only amortization.