Property Type Retail
Financing Type Acquisition
Date July 30, 2020
The deals include a Dutch Bros store in Tucson, a Salad and Go restaurant in Chandler, and a Filiberto’s Mexican Food restaurant in Tucson.
Gantry, the largest independent commercial mortgage banking firm in the U.S., secured acquisition financing for three net-lease properties in Arizona that reflect the rise in activity involving these types of transactions. The deals were for a Dutch Bros store in Tucson, a Salad and Go restaurant in Chandler, and a Filiberto’s Mexican Food restaurant in Tucson.
The acquisitions total nearly $6 million combined and Tim Storey, in Gantry’s Phoenix, office arranged more than $3.7 million in acquisition financing for the borrower, 725 S. Dobson, LLC. The financing was delivered via two different credit unions and structured as a 10-year term on the Dutch Bros deal and 5-year fixed-rate terms on the Salad and Go and a Filiberto’s Mexican Food deals. The three single-tenant NNN leased deals were acquired by the sponsor as part of a 1031 Exchange out of a MOB asset.
Gantry’s Storey said, “Single-tenant net-lease investments are increasing in popularity because they are largely viewed as Covid-proof investments. Not only are investors realizing the value of these passive investments, they recognize they can also benefit from the stability credit tenants provide in a highly volatile and uncertain market.”
He noted those factors helped drive the Phoenix-based sponsor’s decision to shift into food retail properties in a strategy designed to capitalize on the relative safety and performance of net-lease assets.
The properties are located at:
Dutch Bros 9330 E. Golf Links Road, Tucson
Salad and Go 3095 E. Queen Creek Road, Chandler
Filiberto’s Mexican Food 708 W. Ajo Way, Tucson