Karney Properties secured $33.5 million in fixed-rate financing from Nationwide for a 178,454-square-foot Class A industrial building in Cerritos, located in Southern California's Gateway Cities region near the Los Angeles-Orange County border. The Santa Monica-based operator refinanced the single-tenant facility, tapping institutional capital from the major insurer as industrial real estate continues to attract lender interest despite broader market headwinds.
The deal reflects persistent demand for prime industrial assets in Southern California's logistics-heavy markets. Cerritos sits within a critical distribution corridor, making Class A facilities there attractive to both long-term holders and institutional investors. Nationwide's willingness to deploy capital on fixed-rate terms suggests confidence in both the asset quality and the tenant profile backing the property.
For landlords like Karney, refinancing at this scale provides liquidity without a forced sale, allowing them to redeploy capital into new acquisitions or development projects. The fixed-rate structure locks in borrowing costs, insulating the operator from rate volatility over the loan term. Single-tenant industrial buildings command premium financing terms because they reduce lender risk through stable, long-term tenant relationships.
For tenants occupying the space, the refinancing typically signals property stability and ownership committed to maintaining the facility. The capital injection often funds building upgrades and maintenance, benefiting operations.
The Gateway Cities market, which includes Cerritos, Downey, and surrounding municipalities, remains one of Southern California's most active industrial nodes. Proximity to the Ports of Los Angeles and Long Beach, combined with rail access and freeway connectivity, makes these locations essential for regional and national supply chains.
Karney Properties has established itself as a significant player in Southern California's industrial sector. This refinance demonstrates the firm's ability to secure institutional capital from top-tier lenders, a marker of