Bridge Industrial secures $413M for Tacoma project – Puget Sound Business Journal – The Business Journals
Listen to this article 3 min
A massive industrial development planned for Tacoma’s Nalley Valley district recently secured hundreds of millions of dollars in financing, one of the lenders announced Monday.
Mesa West Capital and Morgan Stanley Real Estate Investing have funded a $150 million mezzanine loan for the planned 2.5 million-square-foot Bridge Point Tacoma 2MM, according to a news release issued by Mesa West.
The loan has a five-year, interest-only term.
The mezzanine financing is in addition to a $263 million construction loan that was originated by Little Rock, Arkansas-based Bank OZK. It was recorded in Pierce County on Jan. 31.
Together, the $413 million in loans equates to total loan-to-cost financing of 65%, according to the release, putting the expected project cost at over $635 million.
The loan interest rates were not provided.
The four-building speculative development will be on a former BNSF Railway Co. property at 5802 S. Burlington Way. The structures will range in size from 335,000 to 960,000 square feet.
Synthesis Architects is the architect and Sierra Pacific is the general contractor, city records show.
“Upon completion, Bridge Point Tacoma will offer tenants premium, Class-A industrial space in an ideal location near the port of Tacoma and Interstate 5,” Josh Westerberg, executive director of Mesa West Capital, said in the release. “There is very little supply in the greater Seattle-Tacoma industrial market that offers top-quality Class-A bulk distribution product in a location such as this; Bridge Point Tacoma will command premier rents in the marketplace.”
Westerberg led the origination team along with Jack Condon and Jacob Rosen. The financing was arranged by James Muhlfeld of Eastdil Secured.
Will Milam, head of U.S. investments for MSREI, added that the development is one of few of its size that will be starting in 2024.
The Kidder Mathews team of Todd Clarke, Matt McLennan, Ty Clarke and Matt Murray is marketing the project for lease.
Chicago-based Bridge, which has an office in Bellevue, acquired the 150-acre site in September 2021 for $158 million. The project has since been working its way through the permitting process.
In 2022, Bridge expected the development to be open for tenants by the end of 2023. The project, however, has several faced hurdles — which have since been cleared — including backlash from community groups concerned about traffic and environmental impacts.
Environmental mitigations and infrastructure improvements will be required for the site.
Bridge did not immediately respond to a request for comment.
Environmental and Sustainability Awards
Join us in celebrating Puget Sound's sustainability pioneers! The Environmental and Sustainability Awards, by Puget Sound Business Journal and founding partner, Slalom, honor organizations shaping a greener future.
Q2/April-May-June 2024 Next Generation in Law Nominations
Are you part of the new generation of lawyers making an impact in the field? Or do you know someone who is? Be part of our monthly feature profile. Nominations for Q2 of 2024 (April, May and June) are due close of business Thurs. March 28.
© 2023 American City Business Journals. All rights reserved. Use of and/or registration on any portion of this site constitutes acceptance of our User Agreement (updated January 24, 2023) and Privacy Policy (updated December 19, 2023). The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of American CityBusiness Journals.
This article was autogenerated from a news feed from CDO TIMES selected high quality news and research sources. There was no editorial review conducted beyond that by CDO TIMES staff. Need help with any of the topics in our articles? Schedule your free CDO TIMES Tech Navigator call today to stay ahead of the curve and gain insider advantages to propel your business!
A massive industrial development planned for Tacoma’s Nalley Valley district recently secured hundreds of millions of dollars in financing, one of the lenders announced Monday.
Mesa West Capital and Morgan Stanley Real Estate Investing have funded a $150 million mezzanine loan for the planned 2.5 million-square-foot Bridge Point Tacoma 2MM, according to a news release issued by Mesa West.
The loan has a five-year, interest-only term.
The mezzanine financing is in addition to a $263 million construction loan that was originated by Little Rock, Arkansas-based Bank OZK. It was recorded in Pierce County on Jan. 31.
Together, the $413 million in loans equates to total loan-to-cost financing of 65%, according to the release, putting the expected project cost at over $635 million.
The loan interest rates were not provided.
The four-building speculative development will be on a former BNSF Railway Co. property at 5802 S. Burlington Way. The structures will range in size from 335,000 to 960,000 square feet.
Synthesis Architects is the architect and Sierra Pacific is the general contractor, city records show.
“Upon completion, Bridge Point Tacoma will offer tenants premium, Class-A industrial space in an ideal location near the port of Tacoma and Interstate 5,” Josh Westerberg, executive director of Mesa West Capital, said in the release. “There is very little supply in the greater Seattle-Tacoma industrial market that offers top-quality Class-A bulk distribution product in a location such as this; Bridge Point Tacoma will command premier rents in the marketplace.”
Westerberg led the origination team along with Jack Condon and Jacob Rosen. The financing was arranged by James Muhlfeld of Eastdil Secured.
Will Milam, head of U.S. investments for MSREI, added that the development is one of few of its size that will be starting in 2024.
The Kidder Mathews team of Todd Clarke, Matt McLennan, Ty Clarke and Matt Murray is marketing the project for lease.
Chicago-based Bridge, which has an office in Bellevue, acquired the 150-acre site in September 2021 for $158 million. The project has since been working its way through the permitting process.
In 2022, Bridge expected the development to be open for tenants by the end of 2023. The project, however, has several faced hurdles — which have since been cleared — including backlash from community groups concerned about traffic and environmental impacts.
Environmental mitigations and infrastructure improvements will be required for the site.
Bridge did not immediately respond to a request for comment.
Environmental and Sustainability Awards
Join us in celebrating Puget Sound's sustainability pioneers! The Environmental and Sustainability Awards, by Puget Sound Business Journal and founding partner, Slalom, honor organizations shaping a greener future.
Q2/April-May-June 2024 Next Generation in Law Nominations
Are you part of the new generation of lawyers making an impact in the field? Or do you know someone who is? Be part of our monthly feature profile. Nominations for Q2 of 2024 (April, May and June) are due close of business Thurs. March 28.
© 2023 American City Business Journals. All rights reserved. Use of and/or registration on any portion of this site constitutes acceptance of our User Agreement (updated January 24, 2023) and Privacy Policy (updated December 19, 2023). The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of American CityBusiness Journals.
This article was autogenerated from a news feed from CDO TIMES selected high quality news and research sources. There was no editorial review conducted beyond that by CDO TIMES staff. Need help with any of the topics in our articles? Schedule your free CDO TIMES Tech Navigator call today to stay ahead of the curve and gain insider advantages to propel your business!
