Phelan, LaSalle Secure $67M Industrial Loan

November 20, 2025

This deal refinances two Central Valley facilities.

Phelan Development and LaSalle Investment Management have obtained a $66.7 million refinancing loan for two industrial facilities spanning 847,000 square feet in Lathrop, Calif. Affinius Capital issued the debt in a deal arranged by Preferred Capital Advisors.

Dubbed Building III and IV, the duo belongs to Phelan’s Lathrop Gateway, a master-planned park set to come online in three phases, that will ultimately consist of 10 buildings totaling more than 3 million square feet.

Stage one had delivered 992,405 square feet of industrial space across two facilities in 2021. Two years later, phase two brought online the 847,000 square feet, which Phelan and LaSalle just refinanced. Construction debt for buildings III and IV totaled nearly $61 million, according to Yardi Matrix information. Pacific Premier Bank issued the loans in 2022.

The two buildings feature a clear height of 36 feet and front-load configurations with a total of 101 dock doors and four grade level doors. Parking arrangements include a total of 595 car and 129 trailer spots, as well as truck courts reaching a depth of 195 feet at each facility.

Located at 3400 W. Yosemite Ave. and 18700 Business Park Court, the facilities are about 2 miles from one another and roughly 15 miles south of downtown Stockton, Calif. Interstates 5 and 205 converge approximately 5 miles away.

Preferred Capital Advisors Co-Founder Craig Zarro arranged the financing deal.

Solid investment, despite moderate fundamentals

Central Valley’s industrial vacancy rate was 200 basis points above the national average, clocking in at 11.5 percent in September, according to the latest Yardi Matrix report. The average rent was up 5.3 percent year-over-year to $6.78 at the end of the third quarter, though still below the national average of $8.72.

Despite soft fundamentals, investors were bullish on the market. Total industrial sales volume stood at $972 million during the first nine months, besting the Bay Area ($687 million) and nearly edging out Orange County ($1.1 billion) and the Inland Empire ($1.2 billion).

Among these investors was EQT Real Estate, which paid $264 million for a 2 million-square-foot collection in Manteca, Calif., in July, as well as Dermody, which acquired BGO’s 1.1 million-square-foot warehouse in Lathrop one month earlier.