Fident Capital secured $7.25MM of permanent financing for a 48,000 SF industrial warehouse property in Chandler, AZ. The borrower is a vertically integrated investment and development firm with numerous Phoenix industrial holdings and a long-standing Fident client. Capital came from a Texas-based credit union that delivered a 9-year fixed-rate term with a three-year rate reset, priced at 5.74% (a 235 basis point spread to the three-year treasury). The structure included a rate lock at term sheet execution that held through closing on (no separate rate lock deposit), and cash-out that funded leasing commissions and planned capex.
The assignment’s primary challenge was bringing the asset to market while tenant negotiations remained fluid. The property had multiple LOIs in active negotiation but no fully executed lease, which disqualified the asset from a conventional permanent loan. Capital sources were unwilling to size to the projected revenue without a signed lease, and the slow pace of negotiation with prospective tenants put the deal on hold.
Fident kept lenders warm during the lease negotiation period so that interested capital remained engaged and ready to re-underwrite the moment a lease was signed.
A second challenge surfaced on sizing: the executed lease landed below submarket rents because the tenant was funding substantial tenant improvements out of pocket, which compressed reported NOI and created a shortfall on the borrower’s $7.25MM proceeds target.
Fident identified a capital source willing to underwrite to stabilized Year 2 NOI without imposing a management fee deduction, while recognizing the economic reality of the tenant’s T.I. contribution. The lender also brought an in-house title company that streamlined closing, dropped the survey endorsement requirement, accepted existing third-party reports, and operated on laser pro loan docs that kept legal and closing costs minimal. Rate lock was opportunistic, capturing the three-year treasury near a recent low before moving roughly 60 basis higher in the weeks that followed.
