Gantry has arranged a permanent refinancing for a fully leased light industrial complex in Santa Clara, securing a $9.65 million loan to replace maturing acquisition debt on the property at 2290 De La Cruz Boulevard. The infill asset consists of two light industrial buildings in a Silicon Valley location where similar product is described as being in short supply for non-tech users.
The borrowing entity is a private real estate investor, represented in the transaction by Gantry principal Tony Kaufmann and associate Jake Davis from the firm’s San Francisco production office. Their assignment focused on sourcing long-term, fixed-rate capital to refinance the existing loan on the asset while preserving the sponsor’s business plan for the property.
The resulting debt is a 10-year, fixed-rate, non-recourse loan with a 30-year amortization schedule. The financing was provided by one of Gantry’s correspondent insurance company lenders, and Gantry will retain ongoing servicing responsibilities on behalf of the lender. The structure provides long-duration, institutional capital for the sponsor in an environment where many owners are facing upcoming loan maturities.
The Santa Clara property totals 37,600 square feet across two buildings and is fully leased under a long-term agreement to a national auto collision repair company. The improvements include a recently constructed 11,500-square-foot building addition, which expands the functional capacity of the site for the tenant’s operations. The 100% occupancy and long-term lease term provide income stability to support the new financing.
Kaufmann noted that this asset represents a niche within Silicon Valley’s industrial base, where space suitable for non-tech and non-AI tenants is limited due to strong demand from technology users. After evaluating alternatives for the site, including potential redevelopment toward tech-oriented uses, the sponsor elected to “land bank” the property by expanding and renovating the existing light industrial buildings for ongoing non-tech occupancy. That approach allows the owner to maintain flexibility for future options while benefiting from current cash flow.
The refinancing underscores investor interest in well-located, infill industrial properties in Silicon Valley that cater to traditional service and industrial tenants, even as technology demand continues to influence land use decisions in the region. By locking in long-term insurance company debt on a stabilized, fully leased asset, the sponsor positions the property for durable income and potential future optionality in a supply-constrained corridor.
