By Recapitalizing Debt, JV Leverages Completed Work

A $80.5 million loan was recently arranged for the refinancing of 224 Logistics Park, an industrial facility in Milwaukie, OR. Located at 6433 SE Lake Rd., the 1 million-square-foot property is currently leased to three tenants: Bob’s Red Mill, Heritage Specialty Foods and C&S Wholesale Grocer.

Nick Santangelo of CBRE arranged the loan through H.I.G. Capital on behalf of the owner of the property, a joint venture between Specht Development Inc. and a global institutional investor. The joint venture originally purchased the property in 2018 and began repositioning the asset for a multi-tenant use with warehouse, distribution and manufacturing space, freezer and cooler space, and excess trailer storage. “This was a complex assignment with a number of moving pieces,” said Santangelo. “By recapitalizing the debt, we were able to leverage the completed work while reducing the interest rate and providing additional capital for the partnership.”