Gantry Refinances $16M Industrial Property in Kirkland

Gantry has successfully arranged a substantial $16 million permanent loan to retire existing debt on the Kirkland Business Center, a strategically located industrial property in the greater Seattle area. This significant refinancing underscores the enduring appeal of well-positioned, multi-tenant industrial assets in a market experiencing robust demand.

The 104,000-square-foot facility, situated at 11860 N.E. 112th Street in Kirkland, Washington, benefits from its proximity to Seattle's dynamic economic hub. Originally constructed in two phases during the early 1960s, the property has been consistently operated as a versatile industrial hub, currently boasting 100% occupancy with a diverse roster of small-bay tenants. This high lease-up rate reflects the strong demand for flexible industrial space catering to a variety of business needs.

The newly secured seven-year, fixed-rate loan provides the borrower with a stable, long-term capital solution. A key feature of the financing is its full-term interest-only payment structure, offering significant cash flow flexibility for the owner. Furthermore, the loan includes cash-out proceeds, enabling the borrower to extract equity for other strategic initiatives or investments, a testament to the asset's appreciated value and strong performance.

This transaction was facilitated through one of Gantry's trusted correspondent insurance company partners, highlighting the firm's deep relationships within the institutional lending community. The deal was expertly structured by Gantry principals Mike Wood and Mike Taylor, supported by Senior Associate Tim Brown from the firm's Seattle production office. Gantry will also assume loan servicing responsibilities, ensuring a seamless ongoing relationship for both the borrower and the lender.

The refinancing comes at a time when the industrial real estate sector continues to demonstrate resilience and growth. Driven by e-commerce expansion, supply chain adjustments, and a persistent need for logistics and distribution facilities, demand for industrial space remains elevated across major U.S. markets. The Pacific Northwest, in particular, has seen significant investment activity, supported by a growing population and a diverse economic base.

The Kirkland Business Center's successful refinancing is indicative of the broader trend where established, well-leased industrial properties are attracting stable, long-term debt. Lenders are keen to finance assets with proven track records and strong tenant demand, especially in submarkets like Kirkland that offer accessibility and economic vitality. This deal provides a clear example of how strategic refinancing can unlock value and enhance financial flexibility for property owners in a competitive market.