With a strategic focus on property details, financing structure, leasing progress, and market indicators, RRA Capital's recent closing on an industrial property in Memphis, TN has led to the successful transformation of this spacious warehouse building into a thriving industrial space.

Built in 1961, the property is a one-story warehouse encompassing an expansive 289,000 square feet on 23.61 acres. Featuring clear heights ranging from 16' to 26', 23 dock-level doors, and generous parking for nearly 300 vehicles, the property offers an enticing array of amenities, rendering it highly attractive for industrial purposes.

RRA Capital's non-recourse, interest-only loan of $7.3 million has played a pivotal role in this project's success. Designed with flexibility in mind, the loan incorporates one extension option, underscoring RRA's commitment to meeting the sponsor's financing needs. As the original plan to purchase the property with an equity partner faced delays, the RRA team stepped in with a swift closing timeline, ensuring seamless execution of the transaction.

The sponsor successfully leased the entire property to a reputable home goods wholesaler soon after securing the contract. RRA’s financing included a dedicated $650,000 allocation for tenant improvements. With conservative loan-to-value ratios of 59.7% as-is and 54.1% as-stabilized, the property enjoys a secure and well-balanced financing structure. The robust YOY submarket rental growth rate of 9.4% at closing also signals a thriving rental market in the region.

These promising market indicators fuel the property's potential for strong returns and sustained long-term profitability.