LOS ANGELES— iBorrow, a nationwide private direct lender for commercial real estate, has provided a $3.2 million loan secured by a single story, 36,668 square foot industrial building in Kent, Washington. The Property has ample clear height ranging from 24 feet to 30 feet, substantially higher than competitive warehouses in the market. The Property, which was built in 1975 and has been owned by the Borrower since 1991, is 100% owner-occupied by Ramco Tools which manufactures steel products at the Property. The borrower will use the proceeds of this loan to refinance an existing loan.
The Property is located in the Kent submarket of the Kent Valley, proximate to the Ports of Seattle and Tacoma, Sea-Tac Airport, and I-5 and Hwy-16. Kent is a lower cost submarket than Seattle, as a result of which it has been the strongest performing market in the Puget Sound and one of the strongest nationwide, with an overall average vacancy rate of approximately 4%. The submarket is bolstered by the presence of Boeing and the many manufacturing companies that supply Boeing and the aerospace industry. In addition, the area has seen strong demand from high-tech manufacturing companies, which has contributed to a low vacancy rate for tenants who are interested in Kent’s location and who need Class-B space, like this property.
Brian Good, iBorrow CEO, said, “We like this loan for a number of reasons including the fact that it has a solid existing tenant. We like the strength and the attractive supply-demand dynamics of the submarket and we believe this property should continue to perform going forward. There is no doubt that industrial property is one of the best performing product types nationwide, and we look forward to lending on this asset class in the near future.”