Valencia Realty Capital arranges $6.5 million refinancing for 580 Chelsea

East Boston, MA Valencia Realty Capital has arranged $6.5 million in refinancing for a two-story, mixed-use warehouse and office building. Located at 580 Chelsea St. on a long-term ground lease, the 90,000 s/f building, with clear height reaching as high as 30 feet, is one of the closest warehouse to Logan International Airport’s tarmac, with direct access to the airport via Coughlin Bypass Rd.

“As the closest off-tarmac warehouse to Logan Airport, the building maintains full occupancy in this extremely competitive, supply constrained Boston airport warehouse market,” said Stephen Smeke, CEO Valencia. “Given the attractiveness of the leasehold asset, we are pleased to have arranged a refinance loan with a very competitive interest rate, 30-year amortization and partial recourse for the borrower.”

Valencia Realty Capital team worked on behalf of the building owner to secure the financing from a commercial lender.

Smeke said that in addition to investing the proceeds from refinancing into the building improvements, the borrower was also able to take out cash in order to invest in other investment properties.

Funds will be invested into building improvements, with a special focus on replacing loading docks and other enhancements.

Also, Valencia has arranged $4.5 million in acquisition financing for a cold-storage warehouse facility in Newburyport, Mass., covering nearly 10% of the acquisition cost.

Located at 2 Opportunity Way, the vacant 89,000 s/f facility was purchased by the borrower from a national real estate investment trust (REIT).

“This property is in a highly supply-constrained North Shore cold storage market,” said Smeke. “The new owner is in discussions with a number of potential tenants. We are very pleased to have arranged both senior and mezzanine financing for this property, covering almost 100% of the total acquisition cost.”

Smeke said that the borrower was able to do an expedited closing on the loan and was very pleased with Valencia’s process and efficiency.

“The lender allowed our client to receive high leverage and an expedited closing in a timely manner,” said Smeke.

Valencia team worked on behalf of the buyer to secure the financing from a commercial lender.

Built in 1994 and expanded in 2008, the property is located at the mouth of the Merrimack River, 14 miles east of Haverhill, 30 miles north of Boston, and 70 miles south of Portland, Maine. It has a clearance height of 26 feet and about 14% of the building is office space.

Based in Boston, Valencia Realty Capital arranges flexible, cost-efficient debt capital for commercial real estate borrowers seeking the best terms available in the market. Loan sizes starting at $1 million, Valencia provides tailored capital solutions with competitive terms for all asset classes, including acquisition, repositioning, construction, and refinancing.