Cottonwood expands in industrial finance
LOS ANGELES – Cottonwood Group, a Los Angeles-based private equity real estate investment company, has announced the company’s expansion into the industrial sector with two deals totaling $ 80 million in combined value.
Cottonwood Senior Vice President of Investments Jeffrey Horowitz made the announcement.
Cottonwood has entered into a $ 27 million construction loan for Novaya Foxfield Industrial to finance a 330,000 square foot last mile distribution center in King of Prussia, Pennsylvania. The second transaction is a bridge loan to finance the redevelopment of a 4.76-hectare light industrial property in Silicon Valley, Calif., Is expected to close before the end of the first quarter of 2021.
“It’s no surprise that we are entering the industrial sector by funding unique and complex projects. One represents a specification driven development approach and the second is a creative adaptive reuse project, ”said Horowitz. “The increase in e-commerce and the growing demand for industrial space across the country are making this asset class ripe for opportunity and growth. Projects such as the Novaya Foxfield Industrial distribution center, with immediate access to major highways and same-day reach to a geographic area with favorable demographics are poised to capitalize on this growth. We are delighted to have funded our first industrial agreement with Novaya Foxfield Industrial and look forward to working more with them in the future as both companies are bullish in this market area. “
Cottonwood offers the industrial real estate community a comprehensive solution, ranging from acquisition, construction and bridge financing, pre-development expertise, surety capabilities and warranty issue resolution, to rights, design and construction management. Industrial customers benefit from Cottonwood’s financing and purchasing power of up to $ 500 million per single asset or portfolio transaction.
“We are proud to partner with Cottonwood Management as a construction lender on the King of Prussia logistics center,” said Jeff Harper of Novaya Foxfield Industrial. “The creativity of the company, its diverse and deep capital capabilities, aligned with its extensive real estate expertise, was an extremely attractive combination for this transaction. “
The investment firm plans to launch its new open-ended investment vehicle later this year, which will provide its investors and clients with faster and more efficient execution of investments and finance.