Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured $16.3 million of financing for the acquisition of two buildings located at 950 & 960 W. Behrend Drive in Phoenix adjacent to the 7th Avenue entrance of Loop 101. The properties offer a total of 124,308 square feet of space with a mix of industrial and office uses.  One of the buildings has a vacant suite, but the new owner anticipates filling the vacancy with an existing tenant that wants to expand.  The vacant suite has an office build-out, but the new owner intends to transition the space into more warehouse space.

Gantry’s Tim Storey, Adam Parker, Chad Metzger, and Andrew Christopherson with the firm’s Phoenix production office represented the borrower, a private real estate investor. The five-year, fixed rate loan was secured from a regional bank and features two years of interest only payments while the property stabilizes and then transitions to a 30-year amortization.

According to Gantry’s Tim Storey, “This acquisition met a 1031 Exchange requirement for the sponsor.  The subject property is a well-located flex industrial asset adjacent to Loop 101 and one mile south of Deer Valley Airport.  The fixed rate bank loan provided a flexible structure that provided loan dollars to acquire the asset, and it features an earn-out structure that the sponsor can achieve once the property reaches stabilization.  Multi-tenant Flex industrial properties continue to be attractive to both investors and lenders.