Walker & Dunlop arranges $34 million construction loan for Los Angeles-area industrial warehouse

BETHESDA, MD., February 14, 2022 /PRNewswire/ — Walker & Dunlop, Inc. today announced that it has structured $34,100,000 in construction financing for the fit-up of a 315,320 square foot, 36 clear foot Class A industrial building located on approximately 14 acres at Chino, California. Located in the Inland Empire, whose industrial market remains one of the most desirable warehousing and distribution areas in United Statesthe property is well positioned to take advantage of the region’s low vacancy rate and attractive rental rates.

The growing demand for industrial space is driven by the rapid growth of e-commerce and rapidly changing supply chain and logistics processes. Both new online retailers and traditional retailers continue to rent more and more space to consolidate their position in the hierarchy of e-commerce platforms. Competition for industrial space in the Inland Empire area is rampant among Fortune 500 companies, rated tenants, and third-party logistics companies, driving up average asking rental rates in the area by more than $10. % in the last 12 months only1.

Marc Strauss and Rob Quarton led the Walker & Dunlop team in securing the construction loan for Xebec. The team used their in-depth financing expertise to ensure the loan met the sponsor’s requirements. Their work laid the foundation for a fast and efficient closing process, attractive terms and interest payments over the term.

Jay SoniExecutive Vice President of Xebec, added: “Walker & Dunlop has exceeded my expectations in raising capital for our development. They have been tireless in their search for the best debt available. In fact, they far exceeded our leverage and pricing target by over 14%.

Mr. Quarton commented: “With industrial vacancy rates consistently below 1%, this project represents a rare opportunity to help meet the extremely high demand for Class A industrial products in the Inland Empire. The project has received considerable interest from our loan relationships, thanks to veteran Southern California sponsorship and location exceptionally limited in supply. »

Strategically located in the Inland Empire West submarket, the property benefits from proximity to Riverside, Saint Bernardine, Los Angeles, Orangeand San Diego counties. The warehouse will also be within driving distance of several airports, major courier delivery service centers and ports of Los Angeles and long beach. This location is advantageous for access to regional customers and regional labor. The building will be built on a speculative basis and is expected to generate strong demand from a wide variety of potential tenants.

Walker & Dunlop was the fourth largest capital provider to the U.S. commercial real estate market in 2020, and in 2021 the firm created $49 billion in volume of debt financing. With one of the strongest networks in the industry, the company’s negotiated loan originations in 2021 totaled $30 billiona 170% increase over 2020. To learn more about our capital markets funding capabilities and options, visit our website.

Loans made or arranged pursuant to a California Finance Act license.

About Walker & Dunlop
Walker & Dunlop (NYSE: WD) is the largest provider of capital to the multifamily industry in United States and the fourth largest lender for all commercial real estate, including industrial, office, retail and hospitality properties. Walker & Dunlop enables property owners and operators to bring their vision of communities to life – where Americans live, work, shop and play. The power of our people, our leading brand and our cutting-edge technology make us more insightful and valuable to our customers, delivering an unparalleled experience every step of the way. With over 1,000 employees in all major US markets, Walker & Dunlop has consistently been named one of FortuneThe best places to work® and is committed to making the commercial real estate industry more inclusive and diverse while creating meaningful social, environmental and economic change in our communities.

About Xebec
Xebec, a US-based private real estate company, is exclusively focused on providing real estate investment opportunities to institutional and private investors through its vertically integrated, full-service platform offering the acquisition, development, ownership, financing, leasing, property management (primarily through local third-party property managers) and property investment management services. Xebec focuses on fulfillment, warehouses and distribution centers (bulk logistics), light industrial and infill/last mile properties. Xebec currently has projects in various stages of development spread across multiple states. Learn more about Xebec at https://xebecrealty.com/.

SOURCEWalker & Dunlop, Inc.

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