Property Type Industrial
Date February 10, 2022
The Idaho Falls submarket is Idaho’s second largest industrial base behind Boise, representing seven million square feet with a reported 2.8% vacancy rate.
Four-Building Warehouse Portfolio Encompassing 584,800 Square Feet Acquired in Off Market Transaction; 10-Year Permanent Financing Provided by Credit Union at Attractive Rate & Terms
Idaho Falls, Idaho – Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured $18.7 million in permanent financing for the acquisition of a four-building Idaho Falls warehouse portfolio, 100% leased at time of sale in a mixed-tenant format. The properties are located at multiple addresses along Heyrend Way and 49 South in the Heyrend Industrial Park. The Idaho Falls submarket is Idaho’s second largest industrial base behind Boise, representing seven million square feet with a reported 2.8% vacancy rate.
Gantry Principals Braden Turnbull and Demetri Koston, Senior Associate Josh Natker, and Associate Joyce Chen represented the borrower, a tenant-in-common (TIC) entity, in the transaction. The financing, secured through a credit union, provided a 10-year, hybrid-recourse loan with terms including two-years of interest only payments followed by a 30-year amortization schedule and a mid-term rate adjustment with no pre-payment penalties at any time for the loan.
According to Gantry’s Demetri Koston, “Financing options for quality industrial and warehouse properties remain abundant in today’s credit markets, which allows Gantry to work with borrowers in this asset class to identify the best fit for their investment goals and property fundamentals. 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. For the borrower, upcoming leasing maturities sets the stage for confidence in delivering on a strategic business plan to 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.”