Dealmaker: Gantry Secures $20M For Phoenix Industrial

Gantry, San Francisco, secured $20 million to refinance a 100,000-square-foot flex-industrial building in central Phoenix.

The property, customized for use in pharmaceutical product manufacturing and distribution, is occupied by a single tenant with a long-term lease and significant investment in the asset’s life science operating infrastructure.

Gantry Principal Tim Storey arranged the financing for the private investor borrower. A debt fund lender supplied the ten-year fixed-rate loan with interest-only payment terms.

Storey said life science industrial remains one of the nation’s healthiest asset classes and noted this property is supported by the region’s strong fundamentals and occupancy rates. “This specialized asset’s custom life science improvements critical to the operations of its credit tenant with a long-term lease further strengthened underwriting and allowed us to refinance the property at low leverage with an attractive fixed rate,” he said.

Leverage remains the key to securing optimized long-term commercial mortgage financing in the current cycle, Storey said. “As the market adjusts for a reset from inflationary pressures and macroeconomic disruptions, we encourage our borrower clients to remember that we are in an interest rate climate holding at generational norms for previous healthy cycles,” he said.