Willow Lane & Teton
September 27, 2022
Long-Term Loan Covers Three Buildings in Two Portland MSA Locations Totaling 60,000 Square Feet of Space; Industrial Property Remains a Favored Asset Class for Fixed Rate Lenders
Portland, Ore. – Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured $6.5 million of permanent financing in one loan for the acquisition of two cross-collateralized industrial/flex-industrial assets in the greater Portland, Ore., MSA. The properties include a 14,600-square-foot, flex industrial building located on Willow Lane in Lake Oswego, Ore., and two industrial buildings totaling 45,400 square feet comprising the Teton Business Center in Tualatin, Ore. Both locations are currently 100% leased at time of purchase to a total of five tenants across the three buildings.
Gantry’s Adam Parker, Principal, with the firm’s Phoenix production office teamed with Paddy Ryan, Principal, and Bryant Bushnell, Associate, with its Portland production office to secure the financing on behalf of a long-standing borrower client, a family office partnership. The 20-year loan was secured through one of Gantry’s correspondent life companies, and features a sub 5% interest rate, which locked at time of application.
According to Gantry’s Paddy Ryan, “While 2022 has seen its fair share of commercial mortgage rate volatility, deals are still getting done at attractive pricing for long-term, legacy hold investments. In this instance, a family office partnership with an ample equity commitment saw an opportunity to invest at low leverage in two multi-tenant industrial assets at full occupancy in strong, local submarkets where vacancy is holding at 2% or less. By choosing a life company lender, our client was able to lock an attractive rate at time of application and acquire these well positioned assets for their portfolio. Real estate continues to be favored by investors seeking an inflation hedge in the current cycle, and for well capitalized borrowers, attractive commercial mortgage options for acquisitions or refinancing still exist across a wide spectrum of sources.”