3650 REIT this week funded two loans in California totaling about $145 million, marking the national commercial real estate manager’s first deals of the year.
The financings were split between a $91 million loan to complete the construction of Gillespie Field iPark, a planned industrial facility in El Cajon close to San Diego, and a roughly $54 million loan for The Ranch at Model Colony, a more than 90 percent pre-leased retail development in the city of Ontario.
3650 REIT originated the loans at a time when few lenders have been funding construction loans, noted Jonathan Roth, co-founder and managing partner. Both loans carry terms of 24 months and were originated via the firm’s bridge and event-driven lending platform.
“In a commercial real estate environment with little ground-up construction taking place, we continue to see strong demand for a variety of asset classes in strategic locations and desirable submarkets,” Roth added.
In El Cajon, 3650 REIT worked on behalf of sponsor Chesnut Properties, a local real estate investment manager with more than 30 years of experience across industrial, life science, large-scale office and other related asset classes, Roth said. The planned 380,000-square-foot industrial facility is located at 1756 Weld Boulevard.
Meanwhile, Wood Investments Companies, another local investor which specializes in value-added investment and development in the retail sector, is the sponsor of The Ranch at Model Colony.
Roth noted that 3650 REIT believes the Gillespie project will provide modern industrial space in a submarket where inventory is tight. Meanwhile, The Ranch at Model Colony is in what the firm believes is a prime location, just off the 15 Freeway and Ontario Ranch Road. The property is on a 17-acre lot and planned tenants include Ross Dress for Less, Burlington, Planet Fitness, McDonald’s, Chipotle Mexican Grill and Raising Cane’s.