MICHIGAN and INDIANA – iBorrow, a nationwide private direct lender for commercial real estate, has provided a $13.5 million loan collateralizing two fully-leased single-tenant industrial properties, one in Alma, Michigan and a second in Munster, Indiana. The two manufacturing facilities total 301,000 square feet and are leased to reputable tenants in the automotive and heavy gauge industries.
According to iBorrow’s CEO Brian Good, the loan was structured to help the borrower refinance $12 million in existing debt on the portfolio, as well as recapitalize the ownership structure by allowing the borrower to buy out an equity partner.
“While the sponsor had a fast-approaching hard deadline, iBorrow was able to quickly complete the underwriting process and close the loan in just three weeks,” explains Good. “We ultimately provided a customized financing solution to meet the borrower’s tight timeline in a unique situation. With interest rates continuing to rise and more than $160 billion in commercial real estate debt set to mature this year, it is crucial for borrowers to have a reliable funding partner who can help them navigate these fluid markets and secure the necessary funds for refinancing or acquisitions.”
The Midwest’s industrial sector has experienced significant growth in recent years, due in part to the region’s central location and excellent transportation infrastructure, which allows companies to move goods throughout the country. Additionally, with the growth of e-commerce and the need for well-structured supply chain logistics, the demand for industrial properties in Midwest markets is expected to continue to rise.
“This deal was attractive to us due to the strength of the borrower, the locations of the two properties, and the long-term lease agreements in place,” says Good. “These assets perfectly demonstrate the strong demand for well-located industrial buildings in the Midwest. In fact, the property in Michigan is located in a robust industrial market with a 1.85% vacancy rate, while the Indiana property is within a Chicago submarket located just near the border of Illinois and has easy access to arterial interstate highways and railways across the nation.”
The properties are located at 2000 Michigan Ave. in Alma, Michigan and 9325 Kennedy Court in Munster, Indiana.