Nashville-Area Industrial Building Lands $18M Loan
- Jun 26, 2017
Mission Capital Advisors arranged an $18-million non-recourse loan for Ashley Capital. The real estate investment company plans to refinance Interchange Business Center, a 792,000-square-foot industrial property on a 55-acre site in La Vergne, Tenn. Gregg Applefield, Alex Draganiuk, Lexington Henn and Eugene Shevaldin of Mission Capital represented the sponsor in arranging this loan.
Located at 1714 Heil Quaker Blvd. in the Southeast submarket of Nashville, Tenn., the asset is part of the Interchange City Industrial Park. The property is located less than two miles from Interstate 24 and approximately 13 miles from the Nashville International Airport. The building was constructed in 1973 and expanded in 1978 and 1990. Whirlpool, the former owner, used the facility to manufacture KitchenAid appliances, dehumidifiers, room air conditioners and air purifiers. The site includes a 7-acre paved parking lot that provides parking for more than 1,100 employees.
In 2014, Ashley Capital acquired Interchange Business Center from Whirlpool. According to The Tennessean, the asset traded for $4.7 million. Ashley Capital made value-add improvements to the property, including replacing the roof, incorporating additional dock doors, upgrading the building’s heating and cooling systems, completing the construction of office spaces and repainting the entire building.
Interchange Business Center is currently 100 percent occupied. Tenants include Penske Logistics, Amer Sports Co., Singer Sewing Co. and Fulfillment Supply Innovation.
“Upon achieving stabilization, we felt it was an opportune time to seek out long-term, non-recourse financing, particularly given the low interest rate environment,” said Ashley Capital Senior Managing Director of Finance Lori Roth, in a prepared statement. “We were even able to negotiate the ability to upsize the loan on multiple occasions down the road, if desired,” Draganiuk added.
Image courtesy of Ashley Capital