Monday, May 23, 2016

HFF closes sale of a $30 million development site and arranges $31 million construction financing for industrial development in California’s City of Industry

Anthony J. Brent
NEWPORT BEACH, CA –– Holliday Fenoglio Fowler, L.P. (HFF) announced it has closed the $30 million sale of an entitled 19.86-acre industrial land site and arranged $31 million in construction financing for the development of a 429,840-square-foot, to-be-built, speculative warehouse and cross-dock facility in City of Industry, California. 

HFF initially evaluated joint venture equity structures for the seller, Robhana Group, Inc. (Robhana Group) represented by Cushman & Wakefield.  

Robhana Group decided to sell the project outright, and HFF represented Bridge Development Partners, LLC in the purchase of the land and sourcing of construction debt to fund the development. 

This will be the largest speculative development built in the San Gabriel Valley in the past several years.

The new industrial development will be located at 825 South Ajax Avenue in the infill location of City of Industry, a San Gabriel Valley community 19 miles east of downtown Los Angeles. he development will be approximately 35 miles from the Ports of Long Beach and Los Angeles and is proximate to California State Route 60, a major east-west shipping thoroughfare that allows access to most of the western United States within a few days. 

Ryan Martin
Additionally, the area is serviced by both Union Pacific and Southern Pacific transcontinental railroads.  The one-building facility will have 36’ ceiling clearance at the first column, an ESFR sprinkler system, 65 dock high doors, four grade-level doors, 56’ by 50’ column spacing and 461 parking stalls. 

The HFF investment sales team was led by senior managing director Anthony J. Brent, managing director Ryan Martin and director John Crump. The industrial team has recently structured and closed more than three million square feet of industrial land developments between developers and institutional capital, including debt structuring.

The HFF debt placement team was led by director Brian Torp.

“This transaction represents the continued demand from both developers and capital to meet the increasing requirements of companies seeking Class A distribution space within close proximity to the greater Los Angeles area and Ports of Los Angeles and Long Beach,” Brent said.  “This will be a great project for Bridge Development and continues their success in penetrating the infill markets of greater LA.”
“The infill development market is highly dynamic and efficient, so it requires a strong understanding of capital markets and keen perspective on fundamentals going forward,” said Martin.  “The ability to source equity and debt options under accelerated timeframes can mean the difference in a successful development.  The Bridge Development team did an outstanding job and we appreciated the opportunity to assist them in the process.”
For a complete copy of the company’s news release, please contact:

Kristen M. Murphy
Director, Marketing
HFF | One Post Office Square, Suite 3500 | Boston, MA 02109
Main: 617-338-0990 | Direct: 617-848-1572 | Cell: 617-543-4873 |

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