About this Property in Phoenix, AZ

Enact Partners recently closed a $715,000 acquisition loan secured by a single-tenant industrial warehouse in Phoenix, AZ. The borrower, a repeat client with a strong track record in value-oriented real estate investments, identified the opportunity through off-market channels and moved quickly to secure it at a price notably below market comparables. The property is currently occupied, with a lease term extending into 2028. Although the in-place income is below market, the borrower’s strategy includes holding the property through the remaining lease term and pursuing one of several exit options: negotiating a market-rate renewal, securing a new tenant at updated rents, or selling the property outright. The long-term lease, combined with the property’s stable condition and straightforward industrial use, provides the borrower time and flexibility to position the asset for future value. Enact structured a two-year loan with a 50 per cent interest reserve to help support cash flow during the hold period. This structure allows the borrower flexibility throughout the loan term. Our decision to proceed was based on the borrower’s experience with similar industrial repositioning strategies, their demonstrated ability to execute hold-and-sell business plans, and the conservative basis relative to replacement cost. This financing reflects Enact’s continued commitment to working with experienced operators executing patient, data-driven investment strategies.