Dealmaker: Gantry Secures $43M to Refinance Southern California Industrial Portfolio

Gantry, San Francisco, secured $43 million from a correspondent life company lender to refinance a four-building industrial portfolio for a 15-year term.

The fully leased properties in the Los Angeles, Orange County, Ventura and Inland Empire areas total nearly 430,000 square feet.

Gantry Principal Mark Ritchie and Senior Associate Josh Natker from the firm’s Los Angeles office secured the financing on behalf for their private investor client. The 50 percent loan-to-value loan closed at a sub-2.50 percent rate.

“This transaction highlights the extremely favorable rates and terms available from life company lenders at what will likely be multi-generationally low interest rates,” Ritchie said. “For any investor pursuing a long-hold strategy with the right asset and leverage characteristics, there is not a better time to refinance.”

Ritchie noted industrial is a favored asset class at the moment. “Competition among institutional lenders is creating unprecedented opportunities for [industrial] borrowers,” he said. “In this instance, one of our long-time clients was able to take advantage of these historically low rates by refinancing these properties targeted for a long-term hold, while freeing up significant capital to deploy toward other uses.”