Gantry, the largest independent commercial mortgage banking firm in the U.S., has arranged $17,050,000 in acquisition financing for a Class A industrial building in Phoenix. Developed in 2013 by Sun State Builders, the 325,800-square-foot industrial warehouse is located at 7400 W. Buckeye Rd. within the heart of Phoenix’s Southwest Industrial submarket, an area comprised of several large distribution centers including Amazon, FedEx, Home Depot, Target, WinCo, PepsiCo, and numerous others.

Tim Storey, Principal, and Chad Metzger, Senior Associate, of Gantry’s Phoenix office, exclusively worked with the borrower, Kaiser Industrial SPE, LLC, in securing the acquisition financing with a correspondent life insurance company. The financing was structured as a 10-year, interest-only loan at a sub-3% rate. The loan will be serviced by Gantry.

“The borrower is acquiring the property for $31 million from an institutional seller in an off-market transaction,” said Storey. “It also owns several other industrial buildings in the immediate vicinity and knows the submarket well.”

At loan close, the property was 100% leased to two tenants, OnTrac and Vesta Foodservice. OnTrac is a third-party logistics provider that occupies 236,200 square feet of the building. Vesta Foodservice is a fresh produce and specialty grocery delivery service that occupies the remaining 89,600 square feet.

The property consists of one, multi-tenant industrial warehouse/distribution building located on roughly 18.7 acres. The building offers numerous Class A features that include: 32-foot clear heights; ESFR sprinklers; evaporative coolers; a gate secured 180-foot truck court with a concrete truck apron; 70 dock-high doors and an ample number of trailer and car parking stalls.