Industrial Acquisition

Property Type:


Execution Type:



Everett, WA (Seattle MSA)



Opportunity / Challenge

Established industrial property owner /operator in the Puget Sound region had an opportunity to purchase a 30-acreindustrial site at a below market price. The property was vacant at closing and had substantial deferred maintenance. Despite historically strong local banking relationships, the sponsor could not get a bank commitment in time to close the acquisition.

Red Fox Capital Solution

Red Fox was able to stretch to the required proceeds and provide 78% of the acquisition as: 1) Borrower pledged a8-property portfolio as additional collateral, and 2) personal and corporate guaranty from the Sponsor who shows significant net worth / liquidity, and along history of successfully operating industrial assets in the area. Overall LTV on the deal is 71% including the additional collateral.

Exit Strategy

Borrower is already in talks with a full site user of the facility, and intends to hold the asset and refinance with permanent debt upon stabilization.  Very tight industrial market, limited supply and no new construction...all bode well for borrower's business plan. In the event of a slower than projected lease-up or any variations in permanent market appetite for the asset, borrower's other assets provide significant underwriting support to the plan.   

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