20-Year Permanent Loan Covers Facility 100%-Leased by GSA; Life Company Financing Provides Maximum Proceeds at Optimized Rate for Current Cycle
PHOENIX, AZ (June 5, 2024)—Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured a $9.5 million permanent loan to refinance a facility 100% occupied by the GSA under a long-term lease for use by the Bureau of Land Management. The property, located at 2020 E. Bell Road in Phoenix includes a 28,624-square-foot office building on 6.42 acres, a warehouse, maintenance facilities, outside storage, and a wareyard.
Gantry’s Mark Ritchie, Principal, and Keegan Bridges, Associate, with the firm’s Los Angeles production office, secured the loan on behalf of the borrower, a private real estate investor. The 20-year, fixed-rate loan features 25-year amortization.
According to Gantry’s Mark Ritchie, “Government tenants with long-term leases allow for multiple options for financing debt, including Credit Tenant Lease financing structures, banks, CMBS and life company solutions. Fortunately, Gantry’s significant lineup of lenders provided a variety of solutions, and Gantry’s life company correspondents are a competitive option for financing such as this. With a life company execution, we were able to meet our client’s goal for both flexibility and a legacy hold on the asset in the most cost-effective structure for overall investment goals.”
The Borrower is an entity controlled by Los Angeles-based BH Properties. BH Properties’ John Crump commented: “Gantry has been a good partner for BH Properties in helping us meet our investment objectives. 2020 Bell is a prime example of BH’s value-add ability to acquire, lease and renovate a well-located property and transform it into a long-term, productive asset.”
Founded 30 years ago, privately held BH Properties (http://www.bhproperties.com) is a vertically integrated real estate investment company that acquires and manages a geographically and product-diverse portfolio of assets. The Los Angeles-based company, with six regional offices in San Francisco, Phoenix, Dallas, Houston, Seattle, and Riverside, CA, continues to focus on value-added transactions, distressed debt, gap financing, and ground leases.