California · Industrial
California industrial financing.
Bridge and construction financing for warehouse, logistics, last-mile, and flex industrial across California. Inland Empire (the largest industrial market in the US), LA Basin, Oakland-East Bay, San Diego, and Sacramento Valley.
By David Hodara ·
Inland Empire, LA, Oakland, SD
Active submarkets
$1M-$5M
Loan range
Sub-4% in IE
Vacancy
3-4 weeks
Typical close
California industrial market context
California has the largest industrial market in the US by absorption, driven by port logistics (LA-Long Beach is the busiest US container port complex), last-mile distribution for the LA, SF, and SD population bases, and the Inland Empire's role as the regional bulk warehouse hub. Industrial vacancy has tightened materially since 2020, especially in submarkets servicing port logistics.
California industrial underwriting focuses on tenant credit (port-related logistics and Amazon-anchored properties price tightest), zoning compliance (industrial-to-residential conversion pressure in some submarkets), seismic considerations, and AB 5 / labor law compliance for tenant operations. Construction is constrained by entitlement and environmental review timelines.
Typical loan products for California industrial
Each deal gets routed to the product structure that fits. Most industrial deals in California use one of the following.
Buying California industrial from outside the US
We finance industrial in California for investors based outside the United States as readily as for US borrowers. The loan is made to a US LLC rather than to an individual, which keeps it business-purpose, and the underwriting looks at the property rather than at a US credit profile a non-resident has no way to build.
That means no US credit history, no US income documents, no foreign-national rate premium, and no requirement to travel to the United States to close. If you do not yet have the entity, forming one is a step in the process rather than a prerequisite you have to solve alone.
California industrial FAQ
How does Inland Empire industrial financing differ from LA Basin?
Inland Empire is dominated by big-box bulk warehouse (500K-1M+ sq ft) priced on tenant credit and lease term. LA Basin is smaller-footprint last-mile and flex industrial priced on submarket vacancy and infill scarcity. Different lender pools serve each.
What's typical leverage on California industrial bridge loans?
70-75% LTV on stabilized industrial with strong tenant credit and 5+ year lease term. 65-70% on value-add or transitional. Inland Empire bulk warehouse typically prices tighter than LA Basin last-mile due to investment-grade tenant concentration.
Are California industrial construction starts being financed?
Yes, especially in the Inland Empire and Bay Area where vacancy remains tight. Construction underwriting focuses on entitlement status (long lead times in California), GC track record, and pre-leasing to credit tenants. Speculative starts are harder to finance than build-to-suit.
How does CEQA (California Environmental Quality Act) affect industrial construction financing?
CEQA review can add 12-24 months to entitlement timelines, especially for ground-up industrial in or near residential zones. Lenders verify CEQA status before issuing construction term sheets and may require additional sponsor equity until entitlements are final.
Can a foreign national finance industrial in California?
Yes. We lend to a US LLC rather than to an individual, and we underwrite the property rather than a US credit profile, so a non-resident with no US credit history and no US income documents can borrow on the same terms a US borrower receives. There is no foreign-national rate premium, and you do not have to travel to the United States to close. The structure is the same in California as in every other state.
Other California asset classes
Got a California industrial deal? Send it over.
Term sheet inside 48 hours, or a fast no so you can move on. Business-purpose CRE financing only.