$16.25M Secured Permanent Loan for the Acquisition of 212,000 SQFT FedEx Facility in Portland

Class A warehouse property 100% leased to FedEx Ground for logistics purposes; A life partnership loan with conservative acquisition cost leverage is interest only

Portland, OR (June 11, 2024) – 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 that is 100% occupied by FedEx Ground. The 212,000-square-foot, 126-door facility is located at 6447 N Cutter Circle in Portland, Oregon, in the logistically significant Swan Island industrial segment. The property has been occupied by FedEx for several decades and was completely redeveloped in 2015. The property is strategically located for efficient logistics, with easy access to the Port of Portland, I-5, the Union Pacific Railroad and Portland International Airport.

Tony Kaufmann, principal, and Joe Foley, an associate at Gantry with the company’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 lenders and had a term longer than the term of the permanent tenant’s lease. The loan bears interest only for half a term, followed by a 30-year amortization period.

According to Gantry’s Tony Kaufmann: “We’re starting to see new acquisitions priced in a turbulent market cycle, and financing options to facilitate transactions are readily available through Gantry’s list of correspondent lenders. For high-quality storage assets, such as FedEx’s Cutter Circle facility, we have distributed demand through a number of life insurance programs to meet our client’s existing storage goals. After careful analysis, we secured a corporate life loan with a very attractive interest rate on the cycle, which was lower than the capitalization rate at the time of purchase. As the market begins to adjust to the current higher interest rate climate, we expect more borrowers with capital to deploy will begin to engage and transact again.”

Crane

At Gantry, independent thinking is in our genes. As a private company, we approach everything we do thoughtfully. So, as our industry consolidates and becomes less personal, we strive to ignore convention, set high standards and always put people before profits. With over 30 years of experience in lending and managing an $18 billion national service portfolio, our company leverages a well-established correspondent-powered platform to engineer the best financial solutions for our clients. For those looking for a partner that delivers more, we are a little different. The right kind of different.