Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured a $15 million permanent loan to finance the acquisition of a self-storage facility located at 35501 SE Douglas Street in Snoqualmie, Wash., a suburb east of Seattle. Now under new management by Store Here, the facility features 85,127 rentable square feet across 873-units and includes climate-controlled and drive-up units, and a secured RV/Boat storage yard. The property is also home to a U-Haul equipment rental yard.

Gantry’s Amit Tyagi, Principal, Andy Bratt, Principal, and Sean Kuang, Associate, with the firm’s Los Angeles and Irvine production offices represented the borrower, a private real estate investment partnership. The five-year loan was secured from one of Gantry’s life company correspondent lenders and features upfront interest only and non-recourse terms.

According to Gantry’s Amit Tyagi, “Gantry’s extensive roster of life company lenders continue to find excellent loan solutions for self-storage borrowers. This property was acquired with a relatively low cap rate; Sponsor’s operational enhancement strategy will provide a lift in cash flows over the first few years. This created a debt playing field falling in two clusters, one resulting low leverage with low rates and the other with higher leverage and higher interest rates. This particular life company was able to stretch their underwriting to generate higher leverage while keeping the rate close to the low end of the spectrum. A great sweet spot for Sponsor. This solution surfaced after reviewing more than 50 options across the full spectrum of lenders. The fixed rate, five-year loan from a time-tested life company with an upfront interest only period provided a reliable execution that gives Sponsorship plenty of room to execute their operational plan and drive long term success for the asset. ”

Gantry’s Andy Bratt added, “Every self-storage financing assignment requires understanding the unique blend of Sponsor experience, property history, local market fundamentals, and current performance that will influence debt strategy and requirements. Given the dynamics of this acquisition most loan options would come with negative leverage, however Gantry was able to articulate sponsorship’s clear plans for improved performance and structure loan with a clear path to near term positive leverage, ultimately meeting desired returns.”