Northern California Industrial Property Secures $67 Million Refinance

A recently constructed industrial space in San Joaquin County, Calif., known as Lathrop II, has been refinanced with a $66.7 million loan closed by Affinius Capital LLC.

The mortgage is in the name of a joint venture composed of Phelan Development and LaSalle. The property encompasses 847,000 square feet across two warehouses.

Craig Zarro of Preferred Capital Advisors arranged the financing. Following the closing, Eric Cohen, managing director and co-head of debt origination at Affinius Capital, offered commentary on the deal:

“We continue to seek out opportunities to lend on newly built industrial assets in infill markets with strong fundamentals,” Cohen said. “This location within the Stockton market and northern California’s Central Valley offers strategic access to key demand drivers that should position it well to capture growing tenant demand in the region.”

Lathrop II was designed with modern functionality for logistics and distribution tenants in the Stockton market. The property also provides excellent loading and parking facilities, including 129 trailer parking spaces and 595 auto parking stalls across both buildings.

Situated in Lathrop, Calif., the development offers prime access to major transportation corridors. Specifically, it’s located along Highway 120, which features two access points (including one recently finished on/off ramp) and provides direct links to I-5, Highway 99 and I-205. These routes ensure connectivity to key population hubs, such as Los Angeles and Sacramento, Calif.

The two buildings are integral to Phelan’s Lathrop Gateway, which is a larger, master-planned park that’s scheduled to be delivered in three phases and will ultimately contain 10 buildings exceeding 3 million square feet in total area.

Phase Two, consisting of 847,000 square feet just refinanced by Phelan and LaSalle, was introduced in 2023. This followed Stage One, which delivered an initial 992,405 square feet of industrial space across two facilities in 2021. The initial construction debt for buildings III and IV amounted to nearly $61 million with loans issued by Pacific Premier Bank in 2022, per Edge data.