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Transactions
Permanent Loan Financing
Noble International Technical Center
Milestone Realty Services, Inc. worked in a mortgage brokerage
capacity to secure $36.2 million in permanent loan financing for
the former Detroit Arsenal Tank Plant within the Noble International
Technical Center (NITC) in Warren, Michigan.
Property
The newly renovated 1.14 million square foot multi-tenant
industrial building was originally constructed in 1941
for the U.S. Army
as a tank manufacturing plant. The property is situated in one
of 17 Renaissance Zones sanctioned by the State of Michigan for
economic development incentives, providing
ownership and tenants
with advantageous tax exemptions for real property, personal
property and single business tax. Major tenants in the building
are Noble Metal Processing, a subsidiary of Noble International
and North America’s leading manufacturer of engineering
laser-welded blanks for the automotive industry, and U.S. Manufacturing,
a producer of vehicle axles.
The 65 +/- acre NITC also includes a
newly built 96,000 square foot industrial building occupied by
Sennett Steel and 11 +/- acres
of land fronting Van Dyke Avenue for future development.
Owner Objectives
Milestone was approached by the Owner to procure a permanent mortgage
on the property which would provide the Owner with maximum return
of equity investment and the benefits of current low interest
rates. Milestone was retained because of that experience and
knowledge and for its contacts among the national and regional
lending communities.
Solicitation
Milestone quickly ascertained the positive aspects of the project
through its experience in the metropolitan Detroit industrial
market, and prepared a Request for Financing Proposal, a comprehensive
offering package on the property which detailed the location,
facilities, the financial viability of the current tenants, and
operating projections, as well as the advantages of its location
in a State of Michigan designated Renaissance Zone, in a format
that could be understood by national as well as local lending
sources. Milestone utilized its vast network and knowledge of
national and institutional lenders and approached more than sixty
of them deemed appropriate for this lending scenario to identify
the ultimate first mortgage lender. Milestone personnel have
a significant background in the development, management, valuation,
and financing of industrial and manufacturing properties, which
proved invaluable in this assignment.
Milestone’s extensive knowledge of lenders active in industrial
and manufacturing related projects, as well as knowledge of lending
sources territorial limitations, was important to this process
as it significantly streamlined the initial phases of lender solicitation.
Milestone’s understanding of the project and its knowledge
of the metropolitan Detroit industrial market were valuable assets
in the successful completion of this loan.
Negotiation
Milestone received and analyzed several financing proposals with
differing amounts, terms, interest rates and fees, met with these
lenders to discuss tenant operations and review financial documentation,
conducted site tours, and assisted in the flow of information.
After a review of the final financing scenarios, Louisville,
Kentucky based AEGON USA was selected as the preferred lender.
Closing
While many mortgage brokers’ services stop with a signed
commitment letter, Milestone continued to work with the owner and
the lender through the coordination of due diligence and review
of loan documents, all to ensure a timely closing.
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