LPC Plans 1 MSF Tucson Project
Plans for the industrial campus call for 1 million square feet across four buildings, and groundbreaking is imminent.
Program update, July 2026
What changed. Freddie Mac retired the Small Balance Loan program on April 15, 2026 and folded small-balance lending into its conventional platform as Conventional Small: $2 million to $10 million, up to 80% LTV, 1.25x minimum debt coverage, properties of 50 units or fewer. Freddie no longer has a small-balance product below $2 million. The guidance below describes SBL as it operated before that change.
What you can still do. Small-balance agency financing did not go away. Fannie Mae's Small Mortgage Loan program is still open and lends up to $9 million on five or more units. Below the agency minimums, or where the deal does not fit an agency box, the desk also places bank, CMBS, bridge, life company and HUD/FHA debt. Tell us about the deal and we will size it across every execution that fits.
Lincoln Property Co. has disclosed plans to construct I-10 International, a 1 million-square-foot industrial park in Tucson, Ariz. The news comes days after the institutional investor-developer closed on the $6.5 million acquisition of the 78-acre development site, according to Pima County records. The seller in that deal was a legal entity affiliated with local real estate and equity investor Diamond Ventures.
No details about construction financing were disclosed.
Located in a designated Foreign Trade Zone at the southeast corner of South Alvernon Way and East Los Reales Road, the development site is within 2 miles of Tucson’s airport. The first construction phase is slated to kick off in the coming days, according to REBusinessOnline, with delivery in the second quarter of 2023.
The first phase will include three buildings with a respective 188,327, 158,908, and 214,822 square feet. The structures will feature 31 to 45 dock doors, trailer parking, and 32-foot clear heights.
The second phase will include a 476,000-square-foot cross-dock facility, complete with 98 loading docks, 200-foot concrete truck courts, and parking for 143 trailers and 458 cars, according to a brochure from the developer. The entire park will be cold-storage-capable.
Growing Market
Tucson is growing in importance as an industrial market. The metro’s availability of developable land, combined with low rents relative to Phoenix, Las Vegas, and Southern California, have driven significant demand growth in recent years. The city is within seven hours driving distance of major Southern California markets and is even closer to Phoenix, El Paso, and the U.S.-Mexico border.
At the end of the first quarter, Tucson’s industrial vacancy rate stood at 4.5%, according to a Cushman & Wakefield report. Vacancy has been on the decline since the third quarter of 2020, and rents have climbed as a result. Asking rents averaged $0.67 per square foot, though rates in newly developed buildings are notably higher, between $0.75 and $0.80 per square foot.
Frequently asked questions
What are the benefits of an industrial property loan?
Industrial property loans offer a variety of benefits to borrowers. These include access to capital for acquisition and recapitalization, long-term amortization, and leverage up to 75%. Additionally, Commercial Real Estate Loans offers a complete portfolio of industrial property loans, from manufacturing properties, warehouses, and flex properties, with loan amounts starting at just $1,000,000.
For more information, please visit our Industrial Property Loans page or contact us to speak with a commercial mortgage banker.
What are the requirements for an industrial property loan?
Commercial Real Estate Loans offers industrial property loans for any type of industrial property, no matter the market or property class, from just $1,000,000 and up. Our permanent financing options are targeted to meet intermediate and long-term investment requirements. Options include CMBS, Life Company, Bank Loans, and Small Balance Loans. Loans start at just $1,000,000 with amortizations as long as 30 years and leverage up to 75%.
What are the advantages of an industrial property loan compared to other types of financing?
Industrial property loans offer a variety of advantages compared to other types of financing. For starters, they are typically available for larger loan amounts, starting at $1,000,000 and up. Additionally, they offer longer amortization periods, up to 30 years, and higher leverage, up to 75%. Finally, Commercial Real Estate Loans offers a full capital stack of financial solutions for the acquisition and recapitalization of industrial properties, including CMBS, Life Company, Bank Loans, and Small Balance Loans.
For more information, please visit our Industrial Property Loans page or contact a commercial mortgage banker.
What are the risks associated with an industrial property loan?
The risks associated with an industrial property loan depend on the type of loan you choose. For example, with a CMBS loan, you may be subject to prepayment penalties if you pay off the loan early. With a Life Company loan, you may be subject to higher interest rates and more stringent underwriting requirements. With a Bank Loan, you may be subject to higher interest rates and more stringent underwriting requirements. With a Small Balance Loan, you may be subject to higher interest rates and more stringent underwriting requirements. Additionally, all industrial property loans are subject to market risk, meaning that if the market changes, the value of the property may decrease, resulting in a loss of equity.
What are the current interest rates for industrial property loans?
Interest rates for industrial property loans vary depending on the loan amount, loan-to-value ratio, and other factors. Generally, interest rates range from 4.5% to 6.5%. To get a free quote for your industrial property loan, please contact a commercial mortgage banker or email [email protected].
What are the best strategies for securing an industrial property loan?
The best strategies for securing an industrial property loan are to explore your financing options, research the market, and speak with a commercial mortgage banker. Industrial property values are increasing at a rapid pace, so it is important to get the best financing option available to you. Many types of financing may be available to you, from amounts both large and small. To speak with a commercial mortgage banker, please contact [email protected].