$50 Million Industrial Development Loan

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $50 million industrial development construction loan typically finances a 400,000 to 800,000 square foot Class A distribution warehouse or logistics facility. Most $50M industrial construction loans fund through bank balance sheet, debt funds, or specialty industrial construction lenders with build-to-suit or speculative leasing strategies.

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What a $50M Industrial Development Capital Stack Looks Like

$50M industrial development construction stacks combine senior construction debt with institutional equity.

Capital Source Rate / Cost Size / LTV Notes
Bank construction balance sheet SOFR + 275 to 425 $50M / 60 to 65% LTC Sponsor recourse; depository
Specialty industrial construction lender SOFR + 325 to 475 $50M / 60 to 70% LTC Trophy industrial construction
Bridge debt fund SOFR + 425 to 600 $50M / 65 to 75% LTC Higher leverage; non-recourse
Institutional equity Equity (target IRR 14 to 22%) $15M to $25M Industrial-focused equity

Pricing reflects active CLS CRE quote pipeline as of April 2026. Specific deal pricing depends on sponsor, property, and structure.

Who Closes a $50M Industrial Development Deal

Typical $50M industrial development sponsors are institutional industrial developer-operators with completed industrial projects. Sponsor net worth typically $50M to $500M+.

A Real $50M Example

On a $54M ground-up 580,000 sq ft Class A distribution warehouse construction in a Sun Belt logistics submarket, the sponsor was an institutional industrial developer with 8 completed projects. Bank balance sheet construction at SOFR + 350, 62 percent LTC ($33.5M), with build-to-suit pre-leasing to a credit-tenant 3PL operator.

Anonymized. All deal references protect borrower and lender identity.

$50M Industrial Development FAQ

Build-to-suit is industrial construction with a tenant lease in place at construction start. The structure provides pre-construction tenant commitment and supports stronger lender appetite.
Yes for Tier 1 markets and institutional sponsors. Speculative industrial construction without pre-leasing typically prices 25 to 75 basis points wider than build-to-suit.

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