PCCP, LLC Provides $48.5 Million Senior Loan to LDK Ventures for Development of a 707,600-Square-Foot Distribution Facility in San Francisco Bay Area
San Francisco, CA, November 29, 2016 – PCCP has provided a $48.5 million construction loan to LDK Ventures for the development of Bay Area Logistics Center, a 707,600-square-foot distribution facility in Richmond, Calif., within the East Bay or I-880 Corridor industrial market. With the loan now in place, construction has commenced on the project. The building is scheduled to be completed by September 2017.
The 42-acre site is located within the Pinole Point Industrial Park, a master-planned business park which includes notable tenants such as Amazon, Whole Foods, Williams and Sonoma, and UPS. Pinole Point stands out within the East Bay market because of its institutional quality industrial park setting highlighted by proximity to I‐80 via Richmond Parkway Interchange.
“The loan presented a very strong opportunity to finance the development of institutional quality, high demand distribution product in one of the strongest industrial markets in the nation,” said Dorian Farhang, assistant vice president with PCCP. “The Bay Area industrial market is virtually full, with a lack of available land to accommodate large distribution facilities. The market and product type fully support the loan and we are very pleased to be working with experienced sponsorship in LDK Ventures.”
Farhang noted that historically, large users have migrated to California’s Central Valley given the older, less functional, industrial product in the East Bay. However, leasing of new product this cycle has been absorbed by high quality users such as Amazon, Apple, Whole Foods, FedEx, UPS and Tesla, and has clearly demonstrated the strong demand for larger blocks of state-of-the-art distribution space in the infill East Bay market.
Bay Area Logistics Center will be a cross‐docked warehouse featuring a 36’ clear height, ESFR sprinkler system, and excess trailer and auto parking. The property will offer multiple leasing options due to a divisible design that can accommodate single-user or multi‐tenant configurations. The project is +16 miles from the Port of Oakland, +27 miles from Oakland Airport, and is next door to a UPS hub.
About PCCP, LLC
PCCP, LLC is a premier real estate finance and investment management firm focused on commercial real estate debt and equity investments. PCCP has more than $6.5 billion in assets under management on behalf of institutional investors. With offices in New York, San Francisco and Los Angeles, PCCP has a proven track record for providing real estate owners and investors with a broad range of funding options to meet capital requirements. PCCP originates and services each of its investments, ensuring that clients benefit from added value and outstanding investment returns. Since its inception in 1998, PCCP has successfully raised, invested and managed more than $12 billion of institutional capital through a series of investment vehicles including private equity funds, separate accounts and joint ventures. PCCP continues to seek investment opportunities with proven operators seeking fast and reliable capital. Learn more about PCCP at www.pccpllc.com.
About LDK Ventures
LDK Ventures, LLC (LDK) is a Sacramento-based entrepreneurial real estate development and investment company. The LDK team has significant experience in the development of master-planned communities, “brownfields”, adaptive reuse, mixed-use and industrial projects. LDK also has a history successfully acquiring value-add and distressed real estate investment opportunities. LDK Ventures provides acquisition and development services, asset management, construction management and property management for all LDK development projects and investments. LDK Ventures is based in Sacramento, CA and is operated by Larry Kelley and his son, Denton Kelley, and is owned by the LDK Ventures executive team.