Aero Drive

Five industrial/flex buildings located in San Diego, California

Property Description: Five industrial/flex buildings totaling 102,113 square feet located in San Diego (Kearny Mesa), California. The property was 50% occupied at closing and had substantial below market rents for the in-place tenants. Kearny Mesa is a major industrial and commercial infill submarket in central San Diego with approximately 18 million square feet and a 95% occupancy rate at closing.

Investment Profile: The Sponsor’s business plan was to make improvements to the project that the prior owner was unwilling to undertake and lease it up to the market occupancy and bring the below-market existing tenants to market. The Sponsor intended to sell the property upon stabilization.

Loan Amount: $12,500,000

Loan Type: Acquisition and reposition first mortgage bridge loan

Deal Highlights: The property had very little income at closing due to the low occupancy and the below-market rents for the tenants in occupancy. Mesa West Capital provided a loan that would provide funds to carry the project until stabilization as well as amounts for tenant improvement costs and leasing commissions.

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