MCA Realty Refinances Inland Empire Park
A Northmarq team arranged the $52 million loan.
MCA Realty has secured $52 million in financing for MCA Freeway Industrial Park, a 17-building property in California’s Inland Empire. Northmarq arranged the five-year, partial interest-only loan through a life insurance company. The note features a sub-6 percent fixed rate and a substantial cashout.
The 481,201-square-foot campus in Riverside provides a diverse array of high-quality spaces that cater to a wide range of tenants, according to Scott Botsford, senior vice president of Debt & Equity at Northmarq.
“As a result, tenant demand and occupancy have consistently remained strong at the property,” Botsford told Commercial Property Executive. “Therefore, our goal was to get our Life Company lending partners to recognize this asset class’s inherent strength and value and the sponsorship, MCA Realty, to price the loan accordingly.”
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Botsford, together with Managing Director Joe Giordani, led Northmarq’s Newport Beach Debt + Equity team that secured the deal.
The property was previously subject to a $32 million CMBS loan originated by Wells Fargo Bank in 2017, according to CommercialEdge information. That note was due to mature in 2027.
An Inland Empire industrial park
Located at 1600-2060 Chicago Ave. and 1614-1616 Marlborough Ave., the industrial park can easily serve the Riverside, Orange and Los Angeles counties as well as the broader Southern California region as it is freeway accessible.
The Class B asset, developed in phases between 1966 and 1980, has three dock-high doors, 123 roll-up doors and 962 parking stalls. Suite sizes range from 1,075 to 23,477 square feet for its current mix of 120 tenants.
A recent CommercialEdge industrial report found that Inland Empire’s vacancy rate clocked in at 7.8 percent in January, up 280 basis points over the year but still slightly below the 8 percent national average. Orange County led the California statistics, with a 5 percent vacancy rate, followed by Central Valley (6.8 percent) and the Bay Area (7.6 percent).
Meanwhile, the market’s industrial assets were the fourth-priciest in the country. The average price per square foot of $261 trailed only the ones recorded in the Bay Area ($414 per square foot), Orange County ($314 per square foot) and Los Angeles ($294 per square foot).
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