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Value Add Industrial Investor Closes on Speculative Financing for the Acquisition of 67,000SF Vacant Warehouse in Montgomery County, PA Spec Financing Lives On: Diligence Capital Advisors sources 70% LTC loan for acquisition of a 67,000 SF vacant warehouse in Montgomery County, PA KING OF PRUSSIA, Pa., Nov. 27, 2020  /PRNewswire/ -- Diligence Capital Advisors of Philadelphia sourced and negotiated a $5,900,000 loan from a New Jersey community bank for the acquisition of a 67,000 square foot vacant industrial asset in Montgomery County Pennsylvania. Diligence Capital Advisors described the borrower-sponsor as a boutique real estate investment firm based out of New Jersey which specializes in value add and opportunistic industrial assets in the Philadelphia- New Jersey metro market.   This continues the recent string of numerous speculative financing loan closings for Diligence Capital Advisors in the last 180 days. Based on reports from the lender, the loan closed within 60 days of a signed term sheet, which was confirmed by principals from Diligence Capital Advisors. The parties also jointly confirmed that the loan also was structured with an earn out for the borrower upon hitting stabilization and other agreed upon financial metrics. The warehouse acquired was in poor condition, in need of capex but had great bones, excellent clear height, many loading docks and is well located as a last mile distribution center. The borrower-sponsor also had a strong track top article record of successful leasing of vacant industrial assets. The borrower intends to hire an industrial broker within 30 days to market the asset for lease. "The notion that there is no spec acquisition financing for industrial deals is just wrong.

https://www.prnewswire.com/news-releases/value-add-industrial-investor-closes-on-speculative-financing-for-the-acquisition-of-67-000sf-vacant-warehouse-in-montgomery-county-pa-301181251.html

It sets the tone for the whole project,” Centralia City Manager Rob Hill said. “Everybody just wants to know that the partners in this are going forward in good faith.” The ULC, to be constructed at 417 N. Pearl Street, has been described as an “innovative nonprofit center that connects parents and caregivers to an affordable early learning atmosphere for children ages 18 months to 5 years.”  The facility is planned to be a 45,000 square foot, multi-story building with multiple classrooms, a gym, a playground and a capacity for 150 to 200 kids. “An umbrella agreement does not legally bind the parties to any specific course of action. It is a visionary document for projects that have multiple parties involved. The agreement generally sets forth the project scope, estimated costs and the legal documents that will be needed to complete the project,” the agreement states.  The partners listed in the umbrella agreement are the Early Learning Center, the Boys & Girls Club, the Discover! Children’s Museum and the City of Centralia. To cover the costs of construction of the United Learning Center, the United Way of Lewis County will contribute $3 million, the City of Centralia will contribute $1.9 million, the Discover! Children’s Museum will contribute about $1 million and the Boys & Girls Club “will contribute funds for the cost of construction of the children’s museum and to cover a portion of the costs of the overall United Learning Center,” according to the umbrella agreement. The city owns the land that the ULC will be built upon and will ground lease parcels of the land to each of the partners for the construction for an initial term of 20 years with an option to renew.

http://www.chronline.com/news/united-learning-center-takes-another-step-toward-construction/article_8d589ee2-3107-11eb-bf7e-b3f213ebab02.html
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