(RealShare Orange County convenes at the Hyatt Regency, Irvine, August 16.)
ORANGE COUNTY, CA-Bridgeport Investments, an Orange County-based real estate investment banking and advisory firm, has recently secured a commitment for $25 million of equity financing for several future acquisitions of industrial properties in California, according to the firm’s founding principal Randy Bramel. Bramel tells GlobeSt.com that the investment demand for industrial projects is strong because the fundamentals for industrial properties in most markets in Southern California continue to show improvement.
For that particular deal, the $25 million equity commitment was raised by Bridgeport Investments from an institutional investor on behalf of CapRock Partners, a private investment firm headquartered in Orange County. This is a second equity commitment that followed a $12.5 million commitment that Bridgeport raised in 2011, which CapRock used to acquire six buildings throughout California. CapRock will use the additional funds to acquire industrial properties in California, which can include buildings, land, or non-performing loans secured by such property.
“This financing was structured to provide a streamlined approval process for future acquisitions, ensuring that our client has the ability to complete all-cash transactions and to purchase properties at foreclosure sales,” Bramel says. “This flexibility was a key part of our client’s strategy for these future acquisitions. As properties are acquired that require debt, Bridgeport will be securing that capital as well.”
Depending on the amount of debt used, CapRock has the capability to acquire up to $50 million to $60 million worth of properties. CapRock has already completed its first acquisition under the new equity financing commitment. The firm acquired a 75,000 square-foot multi-tenant business park in Santa Ana, CA.
Bramel tells GlobeSt.com that investment demand for performing commercial industrial properties in Southern California remains strong and there is a growing demand for the remaining distressed or non performing properties. Accordingly, he says, “prices have risen significantly in the last 18 months for performing properties and over the last six to nine months prices have been increasing for distressed or non-performing properties.”
According to Bramel, “equity financing for good deals with quality sponsors continues to be available from institutional as well as private capital sources. Debt financing for assets with cash flow, whether they be permanent or bridge loans is generally available. Properties which are vacant or partially leased or non-performing loans have begun attracting debt financing over the last nine to 12 months.”
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
