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Dealmaker: Gantry Secures $19M for Idaho Industrial Assets
Gantry, San Francisco, secured $18.7 million in permanent financing for a four-building Idaho Falls warehouse portfolio, 100 percent leased at loan closing in a mixed-tenant format.
The properties are located at multiple addresses along Heyrend Way and 49 South in the Heyrend Industrial Park.
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Gantry Principals Braden Turnbull and Demetri Koston, Senior Associate Josh Natker and Associate Joyce Chen represented the tenant-in-common entity borrower in the transaction. A credit union provided a 10-year, hybrid-recourse loan with two years of interest-only payments and a mid-term rate adjustment with no pre-payment premiums.
“Financing options for quality industrial and warehouse properties remain abundant in today’s credit markets,” Koston said. “After reviewing this transaction with our longtime client-borrower, the credit union’s flexibility of terms and attractive rate offered the best fit for a value-add strategy.”
Koston noted upcoming property lease maturities boosted the borrower’s confidence it can elevate the long-term value of these properties as they move to market rate in the years ahead. “This confidence included assessing and taking on the risk of a hybrid-full recourse covenant, a risk mitigated by the generous terms of the financing with no pre-payment penalties and achievable performance benchmarks at a compelling rate, resulting in amenable terms for their asset management strategy,” he said.
The Idaho Falls submarket is Idaho’s second-largest industrial base behind Boise, representing seven million square feet with a 2.8 percent vacancy rate.