Milpitas Refi Points To Industrial Surge
- Jun 22, 2015
In a sign that Milpitas’ industrial market could be getting ready to surge, Stephens & Stephens .L.LC. is refinancing a Class B research and development asset in the area. The company recently completed a financing deal with Los Angeles-based Calmwater Capital, netting $26.2 million in funding.
The credit facility comprises a $12.4 million short-term loan, as well as a future funding of $13.8 million for a host of improvements, capital expenditures and other expenses at the 181,000-square foot R&D facility. The refinancing reflects improving local fundamentals, as availability and vacancy been declining dramatically in the Milpitas R&D market for the past few quarters.
Stephens & Stephens, an affiliate of D.R. Stephens & Co. launched in 1999 invests in office, industrial and R&D properties in the San Francisco Bay area. The entity’s current portfolio consists of 30 properties.
Calmwater Capital is the new corporate handle of Karlin Real Estate Lending, part of a repositioning process that features a more aggressive investment strategy for the five-year-old company. Backed by Karlin Asset Management, Calmwater has arranged $900 million in financings for a diverse portfolio of real estate assets. During the first quarter, Calmwater arranged loans worth a total of $161 million and is on track to complete $93 million in financings by the end of the second quarter.