Industrial financing across the lifecycle
Industrial debt programs we place regularly include:
- Permanent debt from life companies, CMBS, and banks for stabilized industrial
- Bridge debt for lease-up of newly delivered speculative industrial
- Construction debt for ground-up logistics, cold storage, and last-mile
- Single-tenant net lease industrial financing for credit-rated tenants
- Portfolio executions across geographically diversified industrial holdings
- Sale-leaseback financing for corporate occupiers monetizing real estate
Why life companies dominate stabilized industrial
Life insurance companies favor industrial. The asset class's long lease durations, low operating intensity, and durable demand drivers align with the duration-matching needs of insurance balance sheets. The result: life companies routinely deliver the most competitive permanent debt on stabilized industrial, often with longer fixed-rate terms, more flexible prepayment, and tighter spreads than CMBS or bank debt.
VS Capital Group has direct relationships with the top industrial life company lenders and runs a competitive process on every stabilized industrial execution above $10M.
Cold storage and specialty industrial
Cold storage, food-grade industrial, manufacturing, and specialty industrial assets require lenders comfortable with higher operating intensity, more specialized buildouts, and tenant concentration. We work with the specific debt funds and banks that actively finance these subtypes, and we structure the debt to account for the asset's specialized basis.
Frequently asked questions
- What is the best lender for stabilized industrial real estate?
- Life insurance companies typically offer the most competitive permanent debt on stabilized industrial, long fixed-rate terms, flexible prepayment, non-recourse, and tight spreads. CMBS conduit lenders are competitive for larger or higher-leverage executions, and banks remain competitive on relationship pricing and shorter terms.
- Can I finance a speculative industrial development?
- Yes. Construction debt for speculative industrial is widely available from banks and debt funds, typically at 60 to 70 percent loan-to-cost on the senior, with a stabilization period built into the term and a debt yield test triggering conversion to mini-perm or refinance.
- What loan-to-value can I get on industrial real estate?
- Stabilized industrial typically supports 65 to 75 percent LTV. Highly credit-tenant single-tenant industrial with long-duration leases can reach 75 to 80 percent LTV. CMBS commonly delivers the highest leverage; life companies tend to be more conservative but tighter on spread.
- Are industrial loans non-recourse?
- Stabilized permanent industrial debt from life companies, CMBS, and most debt funds is non-recourse with standard bad-boy carve-outs. Construction loans typically require completion and carry guaranties.
- How long are industrial loan terms?
- Permanent industrial debt commonly carries 7-, 10-, 15-, 20-, and even 25- to 30-year fixed-rate terms with life companies. CMBS terms are typically 5 or 10 years. Bridge debt on transitional industrial is typically 24 to 36 months.