Buchanan Street Partners' BMH Closes $12 Million Construction Loan for Dedeaux Properties Industrial Outdoor Storage Development in San Bernardino
Buchanan Street Partners, an affiliate of Buchanan Street Partners, L.P., has provided a $12.0 million non-recourse senior construction loan to finance the entitlement and development of a Class-A industrial outdoor storage facility in San Bernardino, California, the firm announced June 4.
The borrower is Dedeaux Properties, LLC, a Los Angeles-based privately owned developer and investor focused on logistics-oriented facilities in Southern California. The project will be developed on 6.9 acres in the Cajon Pass submarket, near the convergence of Interstate 15 and Interstate 215.
Project Details: Industrial Outdoor Storage in a Key Logistics Corridor
Upon completion, the Class-A industrial outdoor storage facility will include a 300,000 rentable square-foot yard, 171 trailer parking stalls, and a 6,000-square-foot maintenance building. The site's location near the I-15 and I-215 interchange positions it within what Buchanan Street Partners describes as a critical logistics corridor linking the Inland Empire to the High Desert region of Southern California.
The surrounding submarket includes institutional occupiers such as Amazon, FedEx Freight, Tesla, JCPenney, Hallmark, Lowe's, Bob's Furniture, and Dollar Tree, according to the announcement.
Sponsor Background: Dedeaux Properties and DART Entities
Dedeaux Properties has been active in the truck terminal and industrial outdoor storage space across Southern California. According to Buchanan Street Partners, the firm's involvement in the sector is rooted in its affiliation with DART Entities, a family-owned trucking company, which the lender cited as giving Dedeaux Properties operational experience in this property type.
Brett Dedeaux, chief executive and managing partner of Dedeaux Properties, commented on the project's rationale. "This project reflects continued demand for well-located, institutional-quality IOS product in Southern California," Dedeaux said. "Given the property's strategic positioning within a critical logistics corridor, we believe the development will be well received by both the market and users seeking functional, scalable outdoor storage solutions."
Financing Structure
The $12.0 million loan is structured as a non-recourse senior construction loan, covering both the entitlement and development phases of the project. Buchanan Mortgage Holdings originates bridge and construction loans for the acquisition, development, renovation, recapitalization, and refinance of commercial real estate in primary and secondary Western U.S. and Texas markets, using its own balance sheet and fully discretionary lending capabilities.
AVP Alex Frosh of Buchanan Mortgage Holdings noted the firm's existing relationship with the borrower. "Dedeaux is an exceptional industrial investor and operator. We are pleased to continue building upon our standing relationship with them and provide creative financing to complete this project," Frosh said.
SVP Chris Cervisi of Buchanan Mortgage Holdings highlighted the execution aspects of the transaction. "This financing exemplifies BMH's ability to deliver certainty of execution on a tight timeline and flexible loan structuring that aligns incentives for Borrower and Lender," Cervisi said.