Prime Point Capital specializes in delivering customized mortgage brokerage solutions for acquisition, construction, and stabilized financing.
INDUSTRIES/ WAREHOUSE FINANCE
We evaluate current market conditions, tenant credit strength, and property features to secure financing options that match both your short-term expansion needs and long-term investment goals.
Welcome to Prime Industries/ Warehouse Finance
Light industrial and warehouse properties are integral to the supply chain and manufacturing sectors. These facilities often accommodate production, assembly, storage, and distribution activities for a variety of goods. With the rise in e-commerce and evolving logistics demands, industrial real estate has become increasingly valuable.
Key features:
Property Usage: Light industrial typically includes small-scale production, tech labs, research facilities, or assembly plants. Warehouses focus on storage and distribution, with features like dock-high loading doors and ample ceiling heights.
Location & Accessibility: Proximity to major highways, ports, rail lines, and airports is critical. Easy access reduces transportation costs and improves efficiency.
Building Specifications: Column spacing, floor load capacity, and clear height are crucial for tenants needing specialized layouts or forklift operations.
Financing Highlights:
Loan Terms: Loans often range from 5 to 20 years, with amortization periods up to 25 years.
Collateral & Evaluation: Lenders assess the building’s suitability for industrial use, market demand, and the borrower’s business plan.
Lease Strength: If you already have or plan to secure a long-term tenant with a strong credit profile, you may qualify for better terms and rates.
Advantages:
Growing Demand: E-commerce and global supply chain demands are driving increased need for warehouse space.
Flexible Tenant Mix: Industrial spaces can be adapted for different types of tenants logistics, light manufacturing, or research.
Stable Returns: Well-located industrial properties often maintain lower vacancy rates and stable rental rates, even during economic fluctuations.
Challenges:
Specialized Requirements: Some industrial tenants have highly specific needs, requiring significant customization.
Maintenance & Upgrades: Roof load capacity, HVAC systems, and other infrastructure may need frequent maintenance.
Zoning Restrictions: Industrial zoning can be restrictive, limiting alternative uses if market conditions change.
How Prime Point Capital Helps
Our experts at Prime Point Capital have deep experience in underwriting light industrial and warehouse loans. We evaluate current market conditions, tenant credit strength, and property features to secure financing options that match both your short-term expansion needs and long-term investment goals.