Bridge Industrial Obtains $150M Loan for Logistics Park

Bridge Industrial has obtained a $150 million mezzanine loan from funds managed by Mesa West Capital and Morgan Stanley Real Estate Investing to finance a logistics project in Tacoma, Wash.

The mezzanine loan, along with a $263 million first mortgage construction loan originated by Bank OZK, provides total loan-to-cost financing of 65 percent.

The five-year interest-only mezzanine loan was co-originated by MWC, a debt investment manager, and MSREI, the global private real estate investment management business of Morgan Stanley.

The construction project is Bridge Point Tacoma and is a 2.5 million-square-foot Class A logistics campus on 136 acres off of I-5, within 6 miles from the Port of Tacoma. Plans call for three cross-docked warehouse/distribution buildings ranging from 520,000 to 960,000 square feet and a 335,000-square-foot rear-load warehouse. Each building will feature 40-foot clear heights, 130-foot trailer court depths, as well as ample dock-high doors and trailer parking.

The financing was arranged by James Muhlfeld of Eastdil Secured.

Bridge Industrial is active on both coasts

The overall industrial space vacancy in Pierce County has been trending upward, hitting 6.2 percent at the end of 2023, in comparison to 2.6 percent 12 months earlier, according to a fourth-quarter report from Kidder Mathews.

Absorption has been up and down, positive in the second and third quarters, but negative for the fourth quarter and for 2023 overall. Over that time, more than 3.4 million square feet were added to the county’s industrial inventory. Further, seven projects under construction at the end of last year will add 4.2 million square feet, of which only a quarter is preleased.

Bridge Industrial has been staying active in multiple markets across the U.S.:

•  In early January, Bridge secured $53.5 million in financing from Mesa West to develop Bridge Point 999, a 291,758-square-foot industrial building in South Brunswick, N.J.

•  Last July, the developer acquired the 13-acre site of a former aluminum smelter in Kent, Wash., where it will build Bridge Point Kent 180, a 180,000-square-foot warehouse/distribution asset.