$5.4 Million Senior Bridge Loan – Ohio Warehouse/Distribution
November 2016 — Bloomfield Capital (Birmingham, MI), a national direct lender and specialty real estate finance firm, has announced the closing of a $5.4 million senior bridge loan. The loan proceeds were used to purchase a warehouse/distribution property located in Toledo, Ohio.
“Bloomfield’s funds provided the Sponsor the capital necessary to acquire property out of receivership in the Perrysburg/Northwood industrial submarket”, stated Brent Truscott, a principal at Bloomfield Capital. “The Sponsor plans to perform light maintenance and improvements at the property to attract new tenants and expand current leases to maximize occupancy.”
Toledo’s industrial market continues to remain strong. Settled in the heart of the Midwest, Toledo is located within a day’s drive of approximately 70% of the U.S. population. This is largely realized by the city’s interstate access as Toledo is intersected by both I90 and I75.
The interstate access and centralized location have enabled Toledo to consistently outperform the larger U.S. industrial market. As of Q3 2016, Toledo’s vacancy rate has decreased to 4.8%, down from 5.1% in the previous quarter. In addition, Toledo experienced net absorption of 390,554 square feet over the quarter. Quoted rental rates decreased slightly, down to $3.30 from $3.34 in the previous quarter.
Perrysburg, a submarket of Toledo, is consistently a top performing market in Toledo. Perrysburg’s vacancy rate stands at 2.9%, representing seven quarters of consistent improvement. In addition, quoted rental rates have increased each of the last 6 quarters, ending Q3 2016 at $3.52 per square foot.