HFF closes sale of a $30 million development site and arranges $31 million construction financing for industrial development in California’s City of Industry
NEWPORT BEACH, CA – May 3, 2016 – Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has closed the $30 million sale of an entitled 19.86-acre industrial land site and arranged $31 million in construction financing for the development of a 429,840-square-foot, to-be-built, speculative warehouse and cross-dock facility in City of Industry, California.
HFF initially evaluated joint venture equity structures for the seller, Robhana Group, Inc. (Robhana Group) represented by Cushman & Wakefield. Robhana Group decided to sell the project outright, and HFF represented Bridge Development Partners, LLC in the purchase of the land and sourcing of construction debt to fund the development. This will be the largest speculative development built in the San Gabriel Valley in the past several years.
The new industrial development will be located at 825 South Ajax Avenue in the infill location of City of Industry, a San Gabriel Valley community 19 miles east of downtown Los Angeles. The development will be approximately 35 miles from the Ports of Long Beach and Los Angeles and is proximate to California State Route 60, a major east-west shipping thoroughfare that allows access to most of the western United States within a few days. Additionally, the area is serviced by both Union Pacific and Southern Pacific transcontinental railroads. The one-building facility will have 36’ ceiling clearance at the first column, an ESFR sprinkler system, 65 dock high doors, four grade-level doors, 56’ by 50’ column spacing and 461 parking stalls.
The HFF investment sales team was led by senior managing director Anthony J. Brent, managing director Ryan Martin and director John Crump. The industrial team has recently structured and closed more than three million square feet of industrial land developments between developers and institutional capital, including debt structuring.
The HFF debt placement team was led by director Brian Torp.
“This transaction represents the continued demand from both developers and capital to meet the increasing requirements of companies seeking Class A distribution space within close proximity to the greater Los Angeles area and Ports of Los Angeles and Long Beach,” Brent said. “This will be a great project for Bridge Development and continues their success in penetrating the infill markets of greater LA.”
“The infill development market is highly dynamic and efficient, so it requires a strong understanding of capital markets and keen perspective on fundamentals going forward,” said Martin. “The ability to source equity and debt options under accelerated timeframes can mean the difference in a successful development. The Bridge Development team did an outstanding job and we appreciated the opportunity to assist them in the process.”
About Robhana Group, Inc.
Robhana Group, Inc. (Robhana Group) is a privately held real estate investment firm that acquires, finances, develops and manages value-add and opportunistic office, retail, multi-family, industrial and mixed-use properties in the Western United States. Robhana Group is always looking for new investments and to foster new relationships with real estate professionals active in the local marketplace. For more information, visit www.robhana.com.
About Bridge Development Partners, LLC
Bridge Development Partners, LLC (Bridge) develops investment-grade industrial buildings and business parks and acquires land for the development of speculative and build-to-suit projects. Over the past 15 years, Bridge has successfully acquired and developed over 15 million square feet of industrial buildings and projects valued at more than $1.5 billion within the Chicago metropolitan area, as well as South Florida, New Jersey and Los Angeles.
The company takes pride in its ability to recognize opportunities that others overlook. Visit http://bridgedev.com for more information.
HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 22 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.
Holliday Fenoglio Fowler, L.P., acting by and through Holliday GP Corp., a real estate broker licensed with the California Department of Real Estate, License Number 01385740.