Stirling Capital Secures $70M Mortgage Refinance on Its Property Portfolio at Southern California Logistics Centre
- Nov 02, 2012
Stirling Capital Investments has secured a $70 million refinance loan from Bank of America for the Southern California Logistics Centre, the 2,500-acre commercial and industrial complex in Victorville, Calif.
“The first thing we’re doing is we’re paying off the current debt that’s maturing, and that’s 90 percent of it,” Brian Parno, Stirling Capital Investments’ chief operating officer, told Commercial Property Executive. “We are using the balance to do an addition to a building we have and will be finishing the expansion by the end of the year.”
The SCLC industrial and commercial complex is part of Global Access Victorville, the former George Air Force Base, which now serves as an 8,500-acre multi-modal freight transportation hub supported by air, ground and rail connections.
“This valuation and refinance is a testament to the high quality product and incredible tenant roster that Stirling Capital Investments has created at this project,” said Amos Smith, senior vice president of Johnson Capital. “It confirms a positive long-term view of investment in California’s high desert region.”
The expansion will be a 176,800-square-foot addition on the company’s Distribution Centre 3, which will accommodate the increased nationwide distribution needs of Newell Rubbermaid and bring the facility to a total of 584,412 square feet.
“We are basically 97 percent leased so this project has been very successful,” Parno said. “In general, we were successful for a very large loan on a decent portfolio, but I would say that money is still not easy to obtain. If you are a developer with a track record of getting things done and you have an A Class product, you can find financing as we have. But I think it’s still a difficult market out there and we are fortunate.”
To date, Stirling Capital Investments has developed more than 3 million square feet of Class A industrial space at SCLC, which covers six industrial facilities.
“We are in the high desert of southern California and it’s sort of a bedroom community to the traditional southern California market and it’s an emerging location for distribution,” Parno said. “We started on our venture to reposition what was an old Air Force base and over the last 10 years we have slowly transformed the airbase into a reliable logistics hub.”
Evelyn Flanary, Stirling Capital Investments’ VP of finance, assisted Smith in the arrangement of the loan transaction.