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.

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.