Principal and Managing Director Malcolm Davies and Senior Vice President Zack Streit of The Davies Group at George Smith Partners, a Los Angeles-based entrepreneurial commercial real estate capital advisory firm, arranged $35.9 million in construction take-out financing for a state-of-the-art industrial project located in San Marcos, Texas. The facility is home to a single-tenant owner-user focused on clean energy and sustainability, on a long-term, triple net lease.
The 130,000-square-foot manufacturing and research facility is positioned on an expansive 100+ acre parcel, offering significant opportunity for future development in the burgeoning industrial and logistics corridor. The parcel has the potential to yield more than one million square feet of light to heavy commercial and industrial use.
“This project responds to specific demands in a rapidly developing industrial corridor. We were able to identify a capital provider who not only recognized the development potential of the excess land in a booming market, but also accounted for the tenant’s long-term viability,” said Principal and Managing Director Malcolm Davies of George Smith Partners.
Located between San Antonio to the south and Austin to the north, Hays County is a rapidly developing corridor featuring more than 10.6 million square feet of industrial space as of 2021, according to CoStar.
Unprecedented growth within the industrial sector has caused rents, net absorption and demand to reach historical highs. Throughout the pandemic, the sector proved to be unaffected by the recent market volatility and economic uncertainty. Notably, reports CoStar, as compared to the five-year average, the net absorption has more than doubled, fueled by the accelerated consumer shift to e-commerce.
Davies and Streit, along with other Davies Group members, Senior Vice Presidents Drew Sandler and Alexander Rossinsky; Vice President Aiden Moran; Assistant Vice President Brandon Asherian; and Analyst Ben Tracy sourced the financing on behalf of the sponsor.
About George Smith Partners
George Smith Partners is a leading national provider of capital market advisory services to the commercial real estate industry. The firm specializes in arranging financing for commercial and multifamily properties, including acquisition, construction, bridge and permanent loans, as well as mezzanine loans, highly leveraged participating loans and joint venture equity. The company has arranged more than $58 billion in financing since its inception. Additional information about George Smith Partners is available at www.GSPartners.com.
Photo caption: The Davies Group at George Smith Partners secures $35.9 million in construction take-out financing for San Marcos, Texas industrial asset owner-user.