Industrial
Park


Industrial Park

An industrial park is zoned for industrial development, including heavy industries, light industries and warehouses. Assets America® provides commercial construction loans and other industrial real estate loans for industrial parks, industrial buildings, industrial showrooms, data centers, R&D buildings, cold-storage buildings, laboratories, warehouses, distribution centers, plants, and other industrial properties.

Benefits of Industrial Development

The principal benefit of an industrial park is that it clusters together buildings that share specialized zoning, transportation and infrastructure requirements. Land zoned for industrial parks can provide several benefits, including:

Large Industrial Park Complex

  • Infrastructure Sharing:  Multiple buildings share a common infrastructure, thereby lowering per-building costs. Infrastructure elements include communication cables, electrical lines, gas and water pipelines, and access to roadways, railways, ports and airports.
  • Regional and local government support:  Many parts of the country offer governmental support to industrial parks in the form of tax breaks, zoning variances, and supporting-infrastructure construction.
  • Employee conveniences:  Industrial parks offer massive parking facilities and may provide specialized public transportation services. Different businesses may support common amenities, such as health facilities and cafeterias.
  • Environmental controls:  An industrial park might be able to secure a relaxation of environmental controls that would otherwise choke off business.

Industrial Loans from Assets America®

Industrial development is a highly complex and specialized undertaking. Assets America® is well-placed to provide you an industrial property loan, including a commercial construction loan, for your industrial development project. We not only have the resources and experience to successfully finance your industrial loan, we have the wisdom to treat each project as unique. This means we always look for ways to say “Yes!” to your funding requirements, even if your credit is less than stellar. We’re ready to satisfy your industrial property loan needs for construction, refinancing and acquisition of industrial park, industrial building and warehouse properties, starting at $20 million with virtually no upper limit.  Of course we also finance large industrial equipment up to 100% LTV!  Please call us today at (206) 622-3000, or simply fill out the below form for a prompt response!

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Eco-Industrial Park - 4 Benefits of Eco-Friendly Industrial Estates

Types of Industrial Park Loans

The main industrial loan types are for the acquisition, refinance and construction of industrial parks, industrial buildings and warehouses.

Industrial Park Loans for Acquisitions

It’s not unusual for acquisition deals to involve some rehabilitation and redevelopment of existing properties. Commercial mortgage bridge loans are an excellent vehicle for this purpose, in that they are interest-only and far easier than bank loans to secure. Once the reconstruction is complete, acquirers can pay off the bridge loan with a mini-perm loan to be followed by a final, takeout loan that acts as a long-term mortgage on the industrial property.

Industrial park building

Industrial Loan Refinancing

Industrial mini-perm loans have a typical term of up to five years. They are usually refinanced with a takeout loan featuring 30-year amortization at a fixed rate. Existing mortgages can also be refinanced if interest rates fall or if the property owner’s credit improves. Cash-out refinancing frees up investor equity for other uses.

Industrial Construction Loans

Interest-only construction loans and bridge loans typically have terms of up to 18-months. Banks offers the best terms for industrial construction loans but are of course limited to borrowers with good to excellent credit. For many borrowers, bridge loans are a more realistic choice, as they are easier and faster to access. Whereas bank loans are available with interest rates in the 4% to 6% range, bridge loans typically occupy the 9% to 12% range. A revolving construction loan facility provides funding in stages as individual buildings within an industrial park are completed and sold/leased. Construction and bridge loans are eventually replaced by mini-perm and takeout loans.

Warehouse Commercial Loans

One type of industrial property loan is a loan to finance an industrial warehouse building, including construction, acquisition and refinancing. The warehouses are typically Grade B or better, located in an industrial park development. We offer warehouse commercial loans starting at $30 million. Our acquisition and refinancing loans are available for stabilized warehouse building properties, with fixed rates for up to 10 years and amortization periods up to 30 years. These loans permit a maximum LTV of 75%, a minimum DSCR of 1.40, and subordinate debt is acceptable. We usually issue warehouse loans for medium to large market sectors but will on a case-by-case basis consider rural projects.

Industrial warehouse interior with numerous floor to ceiling pallets

Loan Sources

Assets America® uses a variety of funding sources to provide industrial real estate loans.

Bank Loans

We work with a trusted network of community, regional and national banks to provide industrial development loans, acquisition loans and loan refinancing. Bank loans are the least expensive but the hardest to get, and it can take months to secure a bank loan.

Private Lenders

Private lenders provide an alternative to banks as a source of industrial real estate loans. They include private equity funds, institutional investors, life insurance companies, conduits and commercial lending companies. Private lenders can provide short-term financing, such as bridge loans and hard-money loans, as well as mini-term and take-out loans. The following terms are typical for privately funded industrial property loans:

  • Fixed Interest, Non-Recourse Loans
  • LTV up to 75% for Acquisition
  • LTV up to 90% for Rehab Projects 
  • Minimum DSCR of 1.25x
  • Interest-Only Bridge Loans
  • Amortization up to 30 Years
  • Available for Refinance, Acquisition and Redevelopment of Industrial Properties
  • Industrial Subject Property Acts as Collateral
  • Origination Fees of 2% to 4%

Government Financing of Industrial Parks

Local, regional and state governments frequently offer support for the acquisition or construction of land (including soft costs) and buildings for the development industrial parks. They offer flexible repayment terms, below-market interest rates and long-term fixed interest rates. Typically, these government loans cover a portion of eligible costs via a primary mortgage on the project land. Unfunded project costs are financed by bank and/or commercial construction loans.

Industrial Park by the Sea

For example, the Pennsylvania Industrial Development Authority offers industrial real estate loans of up to $2.25M at interest rates 1% to 2% below the industry standard. Origination fees do not exceed 1%. The loans will finance up to 75% of the project, but typically these funds cover a much smaller percentage, since many industrial parks require $20M or more. Assets America® is happy to work with your local development authority to provide the remainder of financing for industrial development projects.

 

Glossary of Industrial Park Terms

TermDefinition
Adaptive Reuse The process of converting an old site or infrastructure for a purpose other than its original design
Business ParkAlso called an office park, it should not be confused with an industrial park, as the activity of business parks is commercial rather than industrial
Building EnvelopeNot to be confused with the building envelope for a physical structure, the building envelope for a parcel of land is the maximum three-dimensional space on a zoning lot within which structures are constructed
Build-OutThe development necessary to make a structure complete and ready to use; development of land to its full capacity
Discretionary ReviewA special power of municipal governments to change or prevent a proposed project even though it complies with local zoning, although it can only be utilized in exceptional circumstances
Feeder RoadsRoadways that connect the industrial park or business park to major roads
Fair Market ValueThe price that a property would sell for on the open market, given a reasonable understanding of relevant metrics
Geographic Information Systems (GIS)Computer-based software to display and interpret geographic and population data
High Cube WarehouseAn industrial building designed to maximize storage capacity via ceilings of 20 feet or greater and open floorplans
Industry 4.0Also called smart manufacturing or digital manufacturing, the “Fourth Industrial Revolution” incorporates automation, the Internet of Things, and cognitive computing in the manufacturing of products
OEMAn abbreviation standing for Original Equipment Manufacturer
Right to RenewA clause within a lease that gives the lessee the right to renew an existing lease for a specified term, though under very specific conditions

Online Resources

Contact Us

Contact Assets America® today at (206) 622-3000 and let’s get started on your industrial park financing or your industrial equipment lease financing!

 

Services

Testimonials

Eric D.
Pleasure to work with and extremely knowledgeable

Ronny was a pleasure to work with and is extremely knowledgeable. His hard work was never ending until the job was done. They handled a complex lease and guided us through entire process, including the paperwork. Not to mention a below market lease rate and more than all the features we needed in a site. We later used Assets America for a unique equipment financing deal where once again Ronny and team exceeded our expectations and our timeline. Thank you to Assets America for your highly professional service!

exp MFGroup
Great experience with Assets America

Great experience with Assets America. Fast turn around. Had a lender in place in 30 minutes looking to do the deal. Totally amazing. Highly recommend them to anyone looking for financing. Ronny is fantastic. Give them a call if the deal makes sense they can get it funded. Referring all our clients.

William P.
Assets America guided us every step of the way

Assets America guided us every step of the way in finding and leasing our large industrial building with attached offices. They handled all of the complex lease negotiations and contractual paperwork. Ultimately, we received exactly the space we needed along with a lower than market per square foot pricing, lease length and end of term options we requested. In addition to the real estate lease, Assets America utilized their decades-long financial expertise to negotiate fantastic rates and terms on our large and very unique multimillion dollar equipment purchase/lease. We were thankful for how promptly and consistently they kept us informed and up to date on each step of our journey. They were always available to answer each and every one of our questions. Overall, they provided my team with a fantastic and highly professional service!

Bob B.
The company is very capable, I would recommend Assets America

Assets America was responsible for arranging financing for two of my multi million dollar commercial projects. At the time of financing, it was extremely difficult to obtain bank financing for commercial real estate. Not only was Assets America successful, they were able to obtain an interest rate lower than going rates. The company is very capable, I would recommend Assets America to any company requiring commercial financing.

Ricardo L.
Assets America was incredibly helpful and professional

Assets America was incredibly helpful and professional in assisting us in purchasing our property. It was great to have such knowledgeable and super-experienced, licensed pros in our corner, pros upon which we could fully rely. They helped and successfully guided us to beat out 9 other competing offers! They were excellent at communicating with us at all times and they were extremely responsive. Having them on our team meant that we could always receive truthful, timely and accurate answers to our questions. We would most definitely utilize their services again and again for all of our real estate needs.

HMG R&D
Assets America is a great company to work with

Assets America is a great company to work with. No hassles. Recommend them to everyone. Professional, fast response time and definitely gets the job done.

DAC Team
Great experience

Ronny at Assets America has been invaluable to us and definitely is tops in his field. Great experience. Would refer them to all our business associates.

MF Group
We were very pleased with Assets America’s expertise

We were very pleased with Assets America’s expertise and prompt response to our inquiry. They were very straight forward with us and helped a great deal. We referred them to all our business associates.

Manny C.
Worked with this company for decades

I’ve worked with this company for decades. They are reputable, knowledgeable, and ethical with proven results. I highly recommend them to anyone needing commercial financing.

David B.
Top-notch professional

Ronny was incredibly adept and responsive – top-notch professional who arranged impressive term sheets.

Monte M.
Assets America helped us survive a very difficult time

Assets America helped us survive a very difficult time and we most definitely give them 5 stars!

Brent G.
Gave me direction to go

Ronny was very friendly and though we were unable to make something happen at the moment he gave me some direction to go.

Allan E.
Highly recommend them for any type of commercial financing

My business partner and I were looking to purchase a retail shopping center in southern California.  We sought out the services of Ronny, CFO of Assets America.  Ronny found us several commercial properties which met our desired needs.  We chose the property we liked best, and Ronny went to work. He negotiated very aggressively on our behalf. We came to terms with the Seller, entered into a purchase agreement and opened escrow.  Additionally, we needed 80 percent financing on our multimillion-dollar purchase.  Assets America also handled the commercial loan for us.  They were our One-Stop-Shop. They obtained fantastic, low, fixed rate insurance money for us.  So, Assets America handled both the sale and the loan for us and successfully closed our escrow within the time frame stated in the purchase agreement.  Ronny did and performed exactly as he said he would. Ronny and his company are true professionals.  In this day and age, it’s especially rare and wonderful to work with a person who actually does what he says he will do.  We recommend them to anyone needing any type of commercial real estate transaction and we further highly recommend them for any type of commercial financing.  They were diligent and forthright on both accounts and brought our deal to a successful closing.

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Commercial Financing Specialist

(206) 622-3000

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