Life Insurance Company
Columbia Industrial Park is a three-building, 135,000 square foot Class A industrial warehouse property located in Portland’s Airport Way industrial submarket. Construction on the Property began in 4Q 2017, and the Property delivered in 2Q 2019. The Property features 20’ to 30’ clear heights, dock and drive-in loading, and ESFR sprinkler systems. The property featured less than 10% office finish, and was approximately 51% occupied at the time of acquisition by five local and regional industrial tenants.
Essex's client was under contract to purchase the property when it was only 51% leased. The client wished to finance their acquisition with a non-recourse, long-term, permanent loan at an attractive interest rate that would also provide structure to fund future tenant improvements and leasing commissions as new leases were signed.
The COVID-19 pandemic created significant challenges for all parties, including difficulties arranging site visits, delays completing the construction of tenant improvements, and complications trying to schedule tenant move-ins. However, both the client and the lender exercised patience and creativity in navigating a new economic environment, and were able to overcome these challenges and close the loan on-time.
Essex secured its client a permanent loan with a 10-year term and three years of interest-only at a competitive interest rate. The loan was signed up and rate locked in the early days of the COVID-19 pandemic. Proceeds from the loan were used to finance the acquisition and to fund leasing capital reserves for the remaining vacant space. Amidst significant market volatility, Essex was able to ensure a successful loan closing under the established acquisition deadline, with no change from the previously agreed-upon loan terms.