Two SAF Keep Storage Facilities
December 19, 2023
Stabilized SAF Keep Facilities in San Ramon and Hayward Managed to Class A Standards with Experienced Sponsorship; Gantry’s Life Company Correspondents Continue to Favor High Quality Self Storage Assets with Attractive Fixed-Rate Debt Options Supporting Legacy Hold Investments
San Francisco, Calif. – Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured a total of $17.6 million in permanent loans to refinance a pair of Bay Area self storage facilities. The life company financings funded the sponsor at $9.5 million for SAF Keep San Ramon and $8.1 million for SAF Keep Hayward. The SAF Keep San Ramon self-storage facility is located at 2001 Faria Preserve Parkway in San Ramon and offers 106,000 square feet of rentable space. The SAF Keep Hayward self-storage facility is located at 1650 Winton and 22373 Thunderbird in Hayward and features 138,605 rentable square feet. Both facilities are professionally managed and maintained by SKS Management.
Gantry’s Tom Dao, Principal, and Erinn Cooke, Associate, with the firm’s dedicated Self Storage Financing Team secured the financing on behalf of the borrower, a private real estate entity. The 10-year loans were sourced from one of Gantry’s correspondent life company lenders and features an attractive fixed rate locked at application with 30-year amortization.
According to Gantry’s Tom Dao, “Our lenders have continued to be active and delivered certainty of execution, whether the market is up or down. We locked in the rates when the US Treasury indices were in the in the low to mid 3% range and closed 6 months later, when the indices had increased by nearly 1%. Once the rates were locked, rate risk was off the table, and we focused on loan closing. Gantry set up the borrowing relationship with the lender to ensure a repeat of the excellent experience. Similarly, in an environment where the indices are expected to fall, locking rate at application helps to remove the risk that spreads or margins increase, which could be an accompanying event when US Treasury Yields tighten.”