Bridge Industrial has snagged $413 million in financing to construct a 2.5 million-square-foot industrial campus in Tacoma, south of Seattle.
The Chicago-based developer secured the cash to face up distribution warehouses at 5802 South Burlington Manner, in Nalley Valley, the Puget Sound Enterprise Journal reported.
Plans for the long run Bridge Level Tacoma 2MM name for 4 buildings between 335,000 and 960,000 sq. toes on land as soon as owned by BNSF Railway, 5 miles from the Port of Tacoma.
Financial institution OZK, based mostly in Arkansas, made a $263 million building mortgage on Jan. 31.
Los Angeles-based Mesa West Capital and Morgan Stanley Actual Property Investing, based mostly in New York, made a $150 million mezzanine mortgage. The mortgage has a five-year, interest-only time period.
Collectively, the $413 million in loans equates to whole loan-to-cost financing of 65 p.c, in response to Mesa West, placing the anticipated undertaking price at greater than $635 million.
The rates of interest for the loans weren’t disclosed.
“Upon completion, Bridge Level Tacoma will supply tenants premium, Class A industrial house in an excellent location close to the Port of Tacoma and Interstate 5,” Josh Westerberg, government director of Mesa West Capital, stated in an announcement.
“There’s little or no provide within the larger Seattle-Tacoma industrial market that gives top-quality Class A bulk distribution product in a location akin to this,” he added. “Bridge Level Tacoma will command premier rents within the market.”
Will Milam, head of U.S. investments for Morgan Stanley Actual Property Investing, stated the event is among the many few of its measurement anticipated to interrupt floor this yr.
Bridge Industrial, which has an workplace in Bellevue, purchased the 150-acre website in September 2021 for $158 million. Environmental mitigations and infrastructure enhancements shall be required for the undertaking to maneuver ahead.
The developer anticipated the event to be open for tenants by the top of final yr. The undertaking, nonetheless, has needed to overcome a number of hurdles, together with pushback from neighbors involved about site visitors and environmental impacts.
Based in 2000, Bridge Industrial has invested $15.8 billion in industrial actual property, together with 273 buildings containing 74 million sq. toes, in response to its web site. Its major markets are within the U.S. and the U.Okay.
— Dana Bartholomew
