Partners Capital Solutions, Inc. said it has provided a USD16 million construction loan to Mission Grove Partners, L.P., to fund ground-up construction of a new industrial park in a redevelopment area adjacent to Ontario International Airport.
This financing was a complex, public-private venture. Mission Grove Partners was referred to PCS after traditional lenders declined to finance the deal due to its complexity, its relatively small loan amount, and the challenges the sponsor encountered in the downturn.
PCS recognized the sponsor´s experience, evaluated the opportunity and worked with Mission Grove Partners to structure a financing solution to meet the needs of all parties.
The project involved over 30 parcels covering 14.6 acres, which were acquired by Mission Grove Partners and by the City. It required a new parcel map and had to meet bond requirements. The developer was required to finance the city´s acquisition of parcels and make certain offsite improvements.
The new map created six parcels on which will be built five industrial buildings ranging in size from 13,000 to 99,000 square feet and totaling 230,000 square feet. Over 50 percent of the project has been pre-sold.
PCS advised the sponsor and financed the deal in two stages.
Partners Capital, a private portfolio capital provider, creates sophisticated financing solutions for real estate professionals with commercial and residential deals from USD2.5 million to USD15 million in the Western United States.