BETHESDA, Md., Feb. 14, 2022 /PRNewswire/ -- Walker &
Dunlop, Inc. announced today that it structured
$34,100,000 in construction
financing for the development of a 315,320 square foot, 36-foot
clear, Class A industrial building situated on approximately 14
acres in Chino, California.
Located in the Inland Empire, whose industrial market remains one
of the most sought-after warehouse and distribution areas in
the United States, the property is
well positioned to benefit from the region's low vacancy and
attractive rental rates.
The rising demand for industrial space is driven by the rapid
growth of e-commerce and a quickly changing supply chain and
logistics process. New online retailers and traditional retailers
alike continue to lease ever-increasing amounts of space to
solidify their position in the hierarchy of e-commerce platforms.
Competition for industrial space within the Inland Empire area is
widespread among Fortune 500 companies, credit-rated tenants, and
third-party logistics companies, driving the region's average
asking rental rates up by more than 10% the last 12 months
alone1.
Mark Strauss and
Rob Quarton led the Walker
& Dunlop team in sourcing the construction loan for Xebec. The
team utilized their deep financing expertise to ensure the loan was
consistent with the developer's requirements. Their work laid the
foundation for a timely and efficient closing process, attractive
terms, and full-term interest-only payments.
Jay Soni, Executive Vice
President at Xebec, added "Walker & Dunlop exceeded my
expectations in finding capital for our development. They were
tireless in their pursuit to find the best debt available. In fact,
they substantially beat our target for leverage and pricing by over
14%."
Mr. Quarton commented, "With industrial vacancy rates
consistently below 1%, this project represents a rare opportunity
to participate in satisfying the extremely high demand for Class A
industrial product in the Inland Empire. The project garnered
significant interest from our lending relationships, thanks to the
veteran Southern California
sponsorship and the exceptionally supply-constrained location."
Strategically located within the Inland Empire West submarket,
the property enjoys proximity to Riverside, San
Bernardino, Los Angeles,
Orange, and San
Diego Counties. The warehouse will also be within driving
distance of multiple airports, major courier delivery service hubs,
and the Ports of Los Angeles
and Long Beach. This location is
advantageous for access to the regional consumer base and the
regional labor force. The building will be built speculatively and
is expected to generate high demand from a wide variety of
potential tenants.
Walker & Dunlop was the fourth largest provider of capital
to the U.S. commercial real estate market in 2020, and in 2021 the
firm originated $49 billion in debt
financing volume. With one of the strongest networks in the
industry, the firm's 2021 brokered loan originations totaled
$30 billion, a 170% increase over
2020. To learn more about our Capital Markets capabilities and
financing options, visit our website.
Loans made or arranged pursuant to a California Financing Law
license.
About Walker & Dunlop
Walker &
Dunlop (NYSE: WD) is the largest provider of capital to the
multifamily industry in the United
States and the fourth largest lender on all commercial real
estate including industrial, office, retail, and hospitality.
Walker & Dunlop enables real estate owners and operators to
bring their visions of communities — where Americans live, work,
shop and play — to life. The power of our people, premier brand,
and industry-leading technology make us more insightful and
valuable to our clients, providing an unmatched experience every
step of the way. With over 1,000 employees across every major
U.S. market, Walker & Dunlop has consistently been named
one of Fortune's Great Places to
Work® and is committed to making the
commercial real estate industry more inclusive and
diverse while creating meaningful social, environmental,
and economic change in our communities.
About Xebec
Xebec, a U.S. based privately-held real
estate company, focuses exclusively on providing real estate
investment opportunities to institutional and private wealth
investors through its vertically integrated and full-service
platform providing real estate acquisition, development, ownership,
financing, leasing, property management (principally through local
third-party property managers) and real estate investment
management services. Xebec focuses on fulfillment, warehouse and
distribution centers (bulk logistics), light industrial and
infill/last-mile properties. Xebec currently has projects at
various stages of development spread across multiple states. Learn
more about Xebec at https://xebecrealty.com/.
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SOURCE Walker & Dunlop, Inc.