Private equity firm Cottonwood Group has entered the industrial financing market with two new deals totaling $80 million. The firm made its foray into the market with a $27 million construction loan for a ground-up construction project in Prussia, PA, and a $53 million bridge loan to fund a redevelopment project in Silicon Valley, CA.
Cottonwood plans to focus on what is calls "unique and complex projects" pointing to its two first projects as examples. Novaya Foxfield Industrial, the ground-up constriction project in Prussia, is a 330,000-square-foot last-mile distribution center spec development, and the Silicon Valley project is an adaptive reuse project.
Although these first two projects are construction loans, Cottonwood will offer a full suite of loan products for everything from acquisition and predevelopment expertise to bonding capabilities and solving guarantee issues, entitlements, design and construction management. The firm has up to $500 million in purchasing power per transaction or portfolio deal, giving it the ability to fund a wide-range of deals.
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