Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured a $7 million permanent loan to refinance a Silicon Valley R&D industrial facility located at 1635 McCarthy Blvd in Milpitas, a key submarket for semi-conductor and technology manufacturing operations. The 48,531-square-foot facility sits on 3.4-acres and is 100%-leased to a long-standing manufacturing tenant with a significant infrastructure investment at the site.

Gantry’s Murphy Osborne, Director, and Alex Poulos, Associate, with the firm’s San Francisco production office represented the borrower, a private real estate investor. The five-year, fixed rate loan was secured through one of Gantry’s correspondent insurance company lenders and features 30-year amortization. Gantry will service the loan.

According to Gantry’s Murphy Osborne, “Gantry continues to have great success working with our insurance company correspondents to finance Silicon Valley and Bay Area industrial properties of all types, be it flex, R&D, or traditional warehouse space. For this assignment on behalf of an experienced sponsor with a strong regional presence, our team’s insight into key local fundamentals enabled us to punctuate its qualifying DSCR to generate strong offers from a national roster of lenders. With the strategic goal of maximizing a cash out component for this legacy hold asset, we positioned both the property’s un-realized value on current rents and residual infill advantages in a strong, supply constrained local market to achieve maximum dollars. After reviewing this requirement with multiple sources, the selected loan with one of our top insurance correspondents ultimately exceeded expectations, offering more cash out than the originally expected with non-recourse, fixed rate terms in a low leverage loan structured for a legacy hold asset.”