UPDATED, Oct. 19, 2023, 1:53 p.m.: Industrial property owners are having an easier time scoring new debt.
Dedeaux Properties, the Commerce-based industrial developer, has scored $190 million in debt to refinance three warehouses in the Inland Empire city of Ontario, according to a Wednesday announcement from BWE, a mortgage broker. A team led by BWE’s Max Sauerman and Tyler Shebeck arranged the financing on behalf of Dedeaux.
New York Life Investments’ real estate division provided the fixed-rate loan, which matures in 2030. Specific terms were not disclosed, though flexibility for paying off the loan early is baked into the deal.
The loan will refinance three properties in Ontario, which together span 1.3 million square feet. The warehouses are located at 2090 South Etiwanda Avenue, 5491 East Philadelphia Street and 5691 East Philadelphia Street, according to property records filed with San Bernardino County.
Dedeaux was able to score attractive terms given the rents across the portfolio “were so far below market,” Sauerman said in a statement.
Each property is leased by a single tenant, according to BWE.
Costco Wholesale has a shipping address at 5691 East Philadelphia Street, according to ImportInfo.com, which pulls data from U.S. Customs and Border Protection.
Dedeaux Properties also recently acquired a 882,000-square-foot distribution facility in Commerce for $190 million, or about $238 per square foot. The firm bought the property from 99 Cents Only Stores, and has leased it back to the discount retailer on a short-term basis, giving Dedeaux opportunity to eventually redevelop the site.
A previous version of this story named BWE’s Tom Mazlo and Steve Perricone as brokers on the deal. The story has been corrected to reflect that BWE’s Max Sauerman and Tyler Shebeck arranged the financing on behalf of Dedeaux.