The Northwestern Mutual Life Insurance Company has provided $63m in permanent financing for the recapitalization of the Space Center Executive Park and Space Center Summit Park in the US state of Missouri.
The 15-year financing carries a sub-3.80 percent interest rate, matching the borrower’s “long-term hold strategy for this legacy asset,” said CBRE’s Murray Kornberg, who arranged the financing with Doug Seylar, Scott Larson, Ben Bastian and Jessica Lytle.
The borrower is an affiliate of St. Paul-based Space Center, Inc., a subsurface industrial developer.
The complex comprises 6.7m sq ft of subsurface (aka underground) industrial space, making up about 25 percent of the 27m sq ft total of subsurface industrial space in the Kansas City metropolitan area.
The Space Center is able to “capitalize on the many advantages of subsurface development, including lower rents compared to surface industrial properties, reduced utility costs because of the consistent year-round temperatures, and heavy loading capabilities due to the bedrock limestone structure,” according to CBRE.
The parks, which have benefited from an average occupancy of 95.9 percent since 2005, feature accessibility by car/truck, semi/trailer and rail. At the time of financing, the complex was were 98.9 percent occupied.