Northmarq arranges $51.25 million in bridge financing for acquisition of Rose Canyon Business Park in San Diego, California
SAN FRANCISCO, CALIFORNIA (April 18, 2023) — Northmarq recently closed on acquisition financing for a large multi-tenant industrial park in San Diego. The $51.25 million loan was arranged by Nathan Prouty and Briana Harney in Northmarq’s San Francisco office for their client Vertical Ventures. Rose Canyon Business Park is located at 4901-4907 Morena Boulevard in San Diego in the Central San Diego industrial market. The industrial park was constructed in 1976 and totals 232,863 sq. ft. across 15 buildings.
“This deal offered in-place rents significantly below market, and 50 percent rollover in the first year. We secured a short-term floating rate loan from a private debt fund,” said Prouty. “The flexible floating rate loan enables the Sponsor to carry out their value-add business plan over the next three years.”
“The Northmarq team was successful in providing us with a wide variety of debt options that were accretive to our business strategy. Ultimately, we executed on the option that allowed for term flexibility, while maximizing proceeds inclusive of additional funding to execute our business plan after the acquisition,” said Hamid Rezapour, founder of Vertical Ventures.
The 150 plus tenant industrial park is located just north of Downtown San Diego. Situated on more than 38 acres within the Rose Canyon submarket, the industrial park offers a strategic location with convenient access to San Diego International Airport, the Port of San Diego, various residential communities, and the extensive amenity base San Diego has to offer. The transaction was structured on a two-year term plus extension options. Northmarq arranged financing for the borrower through its relationship with the bridge lender.
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