SAN DIEGO—The Alison Company has arranged a $11 million loan to facilitate the purchase of three industrial properties in San Bernardino County.

"An interesting component to the loan was that we were able to secure a six-month forward rate lock, as the buyer and seller were both cooperating in exchanges and they needed flexibility of timing," said John Dobrott, an associate with Alison. The loan was set for a 25-year amortization., and included two years of interest only as well.

The properties properties are located in Rancho Cucamonga and Ontario. They are occupied by three separate tenants—one in each building. According to the Alison Company, and new leases presented significant rollover exposure in year five of the loan. The lender was able to overcome that difficulty. The properties include a 45,702 squar-foot, built in 1988, a 83,911 square-foot built in 2005, and a 155,000 square-foot built in 1991.

“The loan was structured to provide the borrower a longer-term commitment with flexibility for sale or refinance during the term,” Dobrott added. “Due to the multiple buildings in the portfolio, our borrower wanted the ability to sell individual buildings during the term of the loan. Additionally, the longer amortization and interest-only components helped to maximize the cash flow for the borrower.”

The borrower was a Los Angeles-based private investor that completed a 1031 exchange after selling another asset in Southern California.