Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured a $16.25 million permanent loan for the acquisition of a Class-A warehouse facility 100% occupied by FedEx Ground. The 212,000-square-foot, 126-door, cross-docked facility is located at 6447 N Cutter Circle in Portland, Ore., in the logistically relevant Swan Island industrial submarket. The property has been occupied by FedEx for decades and was fully redeveloped in 2015.The property is strategically positioned for efficient logistics, with ready access to the Port of Portland, I-5, Union Pacific Railroad, and the Portland International Airport.

Gantry’s Tony Kaufmann, Principal, and Joe Foley, Associate, with the firm’s San Francisco production office represented the borrower, a private real estate investor. The long-term fixed rate loan was secured from one of Gantry’s correspondent life company lenders and structured with a term that exceeds the tenant’s firm lease term. The loan is half-term interest only, followed by a 30-year amortization period.

According to Gantry’s Tony Kaufmann, “We are beginning to see price discovery for new acquisitions in what has been a tumultuous market cycle, and the financing options to facilitate the transactions remain readily accessible from Gantry’s roster of correspondent lenders. For a high-quality warehouse asset like the Cutter Circle FedEx facility, we marketed the request across a range of life company programs to meet our client’s legacy hold goals. After a careful review, we secured a quality life company loan with a highly attractive interest rate for the cycle that was below the capitalization rate on the purchase. As the market begins to adapt to the current higher interest rate climate, we expect to see more borrowers with equity to deploy begin to engage and transact again.”