Life Company Places Permanent Financing on 22-Building Portfolio at Sub 3% Rate; Lender Appetite for Qualifying Industrial Property Loans Remains High in Heated Investment Market

Seattle, Wash. – Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured $130 million in permanent financing for the acquisition of a 22-building industrial portfolio located in the greater Minneapolis/St. Paul, Minn., region. The portfolio, encompassing more than 1.9 million square feet of space on 151-acres total acres, is occupied in a multi-tenant format and features a mix of industrial and flex-industrial buildings.

Gantry’s Mike Taylor, Principal, Brian Bonipart, Principal, and Pat Taylor, Senior Associate, with the firm’s Seattle production office secured the loan on behalf of the borrower, a private investment fund manager. The loan was placed with one of Gantry’s correspondent life company lenders and featured a sub 3% rate for a seven-year term, amortized over 30 years.

According to Gantry’s Brian Bonipart, “Lender appetite for industrial property remains at all-time highs, however funding this portfolio presented complications, even with a significant equity commitment from the sponsor, due to the diversity of building types with a number of older ‘flex’ type buildings. Additionally, this was a purchase that needed to close within 5 weeks of when the loan application was signed. We had arranged previous financings for the borrower with the same lender and they were very comfortable with the sponsor’s operating vision and asset management strategy in addition to the fact they had previously negotiated loan documents.  In the end, Gantry was able to secure the desired financing at a sub 3 percent rate.  The size of this portfolio allowed the sponsor to immediately have a significant footprint in the market and we were pleased to be able to assist with a class-A financing solution.”