Sustainable Credit Partners has closed a $12,800,000 first mortgage loan for Portal Warehousing's acquisition of a 115,580-square-foot industrial property in Jacksonville, Florida. The Dallas office of Cushman & Wakefield arranged the financing.
Proceeds fund the acquisition and a conversion from single-tenant warehouse to multi-tenant micro-warehousing, including LED lighting and right-sized high-efficiency rooftop HVAC units. The adaptive reuse avoids the embodied carbon of new construction, and the equipment work is projected to lift the building's ENERGY STAR score above 75.
Rooftop units on industrial product are routinely oversized, which costs the operator on both the capital line and the utility bill. Right-sizing them at acquisition is the kind of measure that pays back without a tenant ever noticing it happened.
Portal Warehousing is a repeat SCP borrower. SCP financed the same conversion play for Portal in Austin earlier this year.
SCP provides floating-rate bridge loans from $10 million to $100 million for mid-market commercial real estate nationwide, financing the property and the capital plan behind it in a single first mortgage.
"Nobody buys a warehouse for its HVAC, but the operator carries those costs for the whole hold. Financing the fix at acquisition is cheaper than financing it later, and we would rather fund it now." Joe Stevens, Founding Partner and CEO
