Norcross Flex Industrial Acquisition

70% LTC, 4.25% fixed during I/O period
Amount: $

StackSource arranged a $8,269,000 acquisition loan for a value-add industrial flex property in Norcross, GA. Given the property’s location in an infill-industrial submarket with less than 6% vacancy, the Sponsor projects a quick lease-up, along with continued rent appreciation, and NOI growth throughout the property’s hold period. The Sponsor's value-add strategy includes a warehouse-to-flex conversion, tenant improvements, and immediate repairs to capture market rents.The property fits perfectly under the Sponsor’s existing property management and will help to grow their Southeast industrial portfolio.

StackSource Capital Advisor Andrew Bouton secured financing through a regional bank that provided a 70% loan to cost, 15 months of interest only then termed out for 5 years with a 25-year amortization period. The rate will be fixed at 4.25% for the initial interest only period, after which it will reset to the lesser of Prime 0.5% or 4.6%. The loan also comes with a recourse burnoff covenant when the property reaches a 1.35x debt service coverage ratio.  

Deal Team

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