Life Company Bridge Financing Supports Value-Add Repositioning Strategy for Experienced Sponsor; Acquisition Loan Options Attractive Again as Price Discovery Begins to Meet Rate Climate
San Diego, Calif. (January 5, 2024) – Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured a $7.975 million bridge loan for the value-add acquisition of a 61,000-square-foot industrial building located at 1444 30th Street in San Diego, Calif. Originally constructed in 1986, the building is slated for a comprehensive improvement and modernization program to position the property for a legacy hold. It is currently 100% occupied by two tenants.
Gantry’s Tim Storey, Principal, and Chad Metzger, Senior Associate, with the firm’s Phoenix production office represented the borrower, a private real estate company. The bridge loan was secured through one of Gantry’s correspondent life company lenders with a fixed rate, plus extensions.
According to Gantry’s Tim Storey, “As this new rate climate continues stabilizing at the close of 2023, buyers and sellers are now finding harmony on cap rate, value, and price. This building presented an experienced sponsor with a timely opportunity to acquire an older asset with good bones primed for a major repositioning and improvement program. With its submarket vacancies for like-product remaining low, local fundamentals strongly align with their targeted business plan. Our life company correspondents remain a preferred source for bridge and construction finance in the current climate, and we expect that to carry into 2024.”