KING OF PRUSSIA, Pa., Nov. 27, 2020 /PRNewswire/ -- Diligence Capital Advisors of Philadelphia sourced and negotiated a $5,900,000 loan from a New Jersey community bank for the acquisition of a 67,000 square foot vacant industrial asset in Montgomery County Pennsylvania. Diligence Capital Advisors described the borrower-sponsor as a boutique real estate investment firm based out of New Jersey which specializes in value add and opportunistic industrial assets in the Philadelphia- New Jersey metro market. This continues the recent string of numerous speculative financing loan closings for Diligence Capital Advisors in the last 180 days.
Based on reports from the lender, the loan closed within 60 days of a signed term sheet, which was confirmed by principals from Diligence Capital Advisors. The parties also jointly confirmed that the loan also was structured with an earn out for the borrower upon hitting stabilization and other agreed upon financial metrics.
The warehouse acquired was in poor condition, in need of capex but had great bones, excellent clear height, many loading docks and is well located as a last mile distribution center. The borrower-sponsor also had a strong track record of successful leasing of vacant industrial assets. The borrower intends to hire an industrial broker within 30 days to market the asset for lease.
"The notion that there is no spec acquisition financing for industrial deals is just wrong. If the sponsor has a proven track record of creating value and the deal pencils, the funds are out there. Luckily, our sponsor in this case has done this before multiple times so we were able to procure an investor-friendly loan facility that included an immediate release of acquisition/closing costs and capex funds as well as good news money held back for tenant procurement," said Jared Cobert, managing partner of Diligence Capital Advisors based on Philadelphia.
The closing of the acquisition loan occurred on Friday November 20, 2020.
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SOURCE Diligence Capital Advisors