Gantry has arranged a $16 million permanent loan to refinance the Kirkland Business Center, a multi-tenant industrial property located at 11860 NE 112th St in Kirkland, Washington. The financing recapitalizes an established asset in the local industrial market and replaces existing debt for the borrower, a private real estate investor.
The Kirkland Business Center consists of multi-tenant industrial buildings totaling 104,000 square feet. The improvements were originally delivered in two phases, in 1962 and 1969, and are fully leased. The tenant roster is composed of a range of small bay occupants, reflecting the property’s role as a hub for smaller industrial and service-oriented users.
Gantry’s team from the firm’s Seattle production office led the refinancing assignment on behalf of the borrower. The capital markets team included Principals Mike Wood and Mike Taylor, along with Senior Associate Tim Brown. They represented the private investor in securing the new loan from one of Gantry’s correspondent insurance company lenders. While the specific lender was not identified, the transaction falls within Gantry’s correspondent lending relationships.
The new loan is structured as a seven-year, fixed-rate permanent mortgage. It includes cash-out proceeds to the borrower and features full-term interest-only payments, providing predictable debt service and additional liquidity over the life of the loan. Gantry will service the loan on behalf of the insurance company lender, maintaining an ongoing role after closing.
Commenting on the broader market context, Wood noted that well-located, multi-tenant industrial assets in the Puget Sound region remain a preferred allocation target for the firm’s network of insurance company lenders. He pointed to the appeal of stable, fixed-rate permanent financing programs for investors focused on legacy holds, particularly those seeking to benefit from long-term appreciation, historical performance, and strong operating metrics at stabilized industrial properties.
The fully leased status of the Kirkland Business Center and the willingness of an insurance company to provide fixed-rate, interest-only financing highlight continued lender appetite for small bay, multi-tenant industrial product in the area. The transaction underscores ongoing access to permanent insurance company capital for stabilized industrial assets with established operating histories, even as owners look to extract equity through cash-out refinancing.
