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Cottonwood Expands Into Industrial Financing

By Cottonwood Group Press Release

LOS ANGELES -- Cottonwood Group, a Los Angeles private equity real estate investment firm, announced the firm’s expansion into the industrial sector with two transactions totaling $80 million in combined value.

Cottonwood Senior Vice President of Investment Jeffrey Horowitz made the announcement.

Cottonwood has closed on a $27 million construction loan for Novaya Foxfield Industrial to fund a 330,000-square-foot ground-up last-mile distribution center in King of Prussia, Pa. The second transaction is a bridge loan to fund the redevelopment of a 4.76-acre light industrial property in Silicon Valley, Calif. set to close before the end of 2021's first quarter. 

“It is not surprising that we are entering the industrial sector by financing unique and complex projects. One represents a spec-first approach to development and the second is a creative adaptive reuse project,” said Horowitz. “The rise in e-commerce and growing demand for industrial space across the country makes this asset class ripe for opportunity and growth. Projects such as Novaya Foxfield Industrial’s distribution center, with immediate access to major interstates and same-day reach to a geographic area with favorable demographics are poised to capitalize on this growth. We are thrilled to have financed our first industrial deal with Novaya Foxfield Industrial, and look forward to working with them more in the future as both companies are bullish on this market sector.”

Cottonwood offers the industrial real estate community a complete solution—from acquisition, construction and bridge financing, predevelopment expertise, bonding capabilities and solving guarantee issues, to entitlements, design and construction management. Industrial clients benefit from Cottonwood’s financing and purchasing power of up to $500 million per single or portfolio asset transaction.

“We are proud to partner with Cottonwood Management as our construction lender on the King of Prussia logistics hub,” said Jeff Harper of Novaya Foxfield Industrial. “The firm’s creativity, diverse and deep capital capabilities, aligned with their broad real estate expertise, was an extremely attractive combination for this transaction.”

The investment firm plans to launch its new open-ended investment vehicle later this year which will provide both faster and more efficient investment and financing execution for its investors and clients.

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