Dealmaker: Gantry Secures $33M for Industrial, Retail Properties

Gantry, San Francisco, secured $33 million to refinance a North Carolina industrial property and a southern California retail center.

Fayetteville, N.C. industrial property.
Photo credit: Gantry

In Fayetteville, N.C., Gantry secured $9 million to refinance a 260,000-square-foot single-tenant industrial property. The asset is fully leased for a 15-year term to a credit tenant, which uses the building for its East Coast distribution and customer service operations. The building dates to 1991 with a 2015 renovation.

Gantry Principals Tim Storey and Adam Parker with the firm’s Phoenix production office, secured the loan for the private owner/investor borrower. A life company lender provided a 10-year fixed-rate loan.

“The national industrial property market is one of the healthiest asset classes in commercial real estate today,” Parker said. “By signing a new 15-year lease to a credit tenant, the borrower was able to attract a life company lender despite the asset being located in a tertiary market. The lender was able to lock the low 3% interest rate at loan application, which proved to be extremely important in an increasing interest rate environment.”

Village at Moorpark.
Photo credit: Gantry

In Moorpark, Calif., Gantry arranged a $24 million bridge loan to refinance the Village at Moorpark, a 129,000-square-foot suburban retail center located at 706-790 Los Angeles Ave. The property houses essential and destination retailers including a recently opened Amazon Fresh and Dover Saddlery.

Gantry Principal Mark Ritchie and Associate Austin Ridge with the firm’s Los Angeles production office secured the bridge financing for the private real estate investor borrower. An investment management platform experienced in underwriting value-add commercial real estate transactions provided the financing, which included earn-out provisions with holdbacks tied to future performance milestones and extension options.

“This bridge funding replaced the original acquisition financing with new capital focused on a continued leasing and improvement program,” Ritchie said.