Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured a total $39.5 million in permanent loans for the owner of two Metro Phoenix industrial assets, Parc Germann Industrial Park and Ray Industrial Park. The Parc Germann property encompasses 225,000 square feet in two recently acquired, 100% occupied, Class A industrial buildings located at 2215 & 2225 East Germann Road in Chandler, an East Valley Metro Phoenix suburb. Ray Industrial Park offers 139,000 square feet in one building, 100% occupied in a multitenant format located at 7535 East Ray Road in Mesa, also an East Valley suburb.

Gantry’s Tony Kaufmann, Principal, and Joe Foley, Associate, with the firm’s San Francisco production office represented the borrower, a Bay Area real estate investor with a legacy-hold Arizona investment strategy. Each fixed rate loan was secured from Gantry’s roster of correspondent insurance company lenders. The individual non-recourse loans featured interest only payments and had no ongoing structure or operating covenants. The rate lock on both loans allowed the borrower to catch a dip in treasuries before they rapidly increased.

According to Gantry’s Tony Kaufmann, “We do our best work for clients when we can provide holistic portfolio counsel focused on optimizing their debt and equity structures across a full set of holdings.  While there has been some softening recently in the East Valley from a wave of new construction deliveries, our ability to articulate sponsor experience, occupancy, rent roll, long-term fundamentals, and location relevancy made for turnkey closings. Both refinancings were for opportunistic acquisitions with existing higher rate financing in place, and by underwriting permanent loans at fixed rates offering at least some interest only, a pending maturity was retired, and a standing acquisition credit line replenished.”