MIAMI (March 29, 2022) – Berkadia announces it has secured $20.04 million in construction financing for HRP Medley, a to-be-built warehouse totaling 174,348 square feet in the highly sought-after and strategically located Medley submarket of Miami, Fla.
Senior Managing Director Charles Foschini and Managing Director Christopher Apone of Berkadia Miami secured financing on behalf of the owner, Chicago-based Hilco Redevelopment Partners and Edge Principal Advisors out of New York. Hilco acquired the 8.45-acre parcel of land in May of 2021 and anticipates completion of the warehouse in summer of 2022.
CIBC provided a three-year, interest-only non-recourse loan with two 12-month extension options and a 65 percent loan-to-cost ratio. Underwriting and capitalization includes tenant improvements.
“The transaction presented Hilco the opportunity to enter a nationally recognized industrial market at an attractive loan basis of $115 per square foot,” said Foschini. “That, combined with the strength of the borrower, allowed the lender to make a non-recourse construction loan, a rarity for a bank lender. The Medley submarket is outperforming the already highly competitive Miami-Dade industrial market. High barriers to entry in this land-constrained infill market, combined with strong demand, has pushed the submarket’s vacancy rate to record lows.”
Located at 11002 NW South River Drive, HRP Medley will be a front-load Class A warehouse with 32-foot clear heights and bay sizes of 54 feet by 43 feet, four inches. It will have 42 exterior doors (9-foot by 10-foot includes bumpers) and four drive-in doors (12-foot by 14-foot with ramps). The property will have emergency egress lighting, supervisor fire alarm, ESFR fire sprinkler system, warehouse air ventilation and 157 parking spaces.
HRP Medley will offer exceptional access to some of South Florida’s most important roadway systems, including immediate access to Palmetto Expressway, Florida Turnpike, and I-75, placing over 80 percent of South Florida’s population within a 60-minute drive.
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