Walker & Dunlop, Inc. has originated a $19,000,000 loan for a 575,000 square foot light manufacturing/warehouse facility located in Alsip, Illinois.
John Pantone, senior vice president, led the Walker & Dunlop team that originated the $19 million CMBS loan, provided by Walker & Dunlop Commercial Property Funding (“WDCPF”). The loan was structured as a 10-year term with a 4.83% interest rate and took 36-days to go from signed application to closing. Mr. Pantone stated, “The fact that we were able to process this deal in just over a month is an accomplishment for the Walker & Dunlop team. We invested the time to fully understand the history of Crown Cork & Seal’s operation at the property and its importance, as the lease expires within the loan term.”
The property was built in built in 1971 and is located 20 miles South of Chicago, Illinois in the suburb of Alsip, Illinois. The property includes two structures, including a single tenant 250,000 square foot warehouse/light manufacturing space, occupied by Crown Cork & Seal, and a multi-tenant 325,000 square foot two-story office building with research and development and warehouse space, occupied by Crown Cork & Seal, Plastipak, and GC America. The property was owner occupied for decades by Crown Holdings, Inc. In 2006, Patriot Equities, the borrower, acquired the asset in a sale-to-lease back transaction. Crown Cork & Seal, a global packaging product manufacturer, is the primary tenant leasing 74% of the total rentable space, with a lease expiration in 2022.
“Walker & Dunlop was able to deliver a loan structure that allowed Patriot to realize its objectives at the Property including a long term capitalization of the asset,” according to Geoffrey Gardner, Chief Investment Officer at Patriot Equities. “We enjoyed our interaction with the entire Walker & Dunlop team who worked diligently to accommodate an expedited closing timeframe,” said Mr. Gardner.
