Bay Area Special Purpose Office & MOB assets receive $33.3 million in permanent financing.
FOR IMMEDIATE RELEASE
Transaction Details
- Loan Amount: $33,300,000
- Loan Type: Fixed-Rate Financing
- Loan Term: 10-Year Term
- Loan Amortization: 30-Year Amortization
- Property Type: Special Purpose Office Building & Medical Office Building
San Francisco, CA, June 22, 2020 – Gantry, Inc., the largest independent commercial mortgage banking firm in the U.S., secures $33,300,000 in permanent financing for adjacent buildings in the San Francisco East Bay. The two unique assets are comprised of a 70,000-square-foot special purpose office building and a 65,000-square-foot medical office building. Both assets are on long-term ground leases and were built by the borrower, a seasoned Bay Area developer.
Andrew Mekjavich, Principal, and Ben Johnson, Senior Associate, in Gantry’s San Francisco office, worked with the owner to structure two 10-year fixed rate loans, with two unique lenders, both on a non-recourse basis. The financing was used to retire the existing debt and execute their business plan while taking advantage of the historically low interest rate environment. The latter of the two closings was put under application just before mandatory shelter in place orders were issued throughout the region and was closed in May without any changes to quoted terms.
Mekjavich noted, “At the time of their development, these two properties were two of the most important land uses in the area, with tenants providing a wide variety of crucial medical services to a fast-growing community. Since that time, the properties have grown in importance to the submarket and its residents. The key role the properties play in the community today serves as evidence of the strength of the borrowers’ vision for the area.”
Mekjavich added, “While the properties are adjacent, and complement one another in terms of use, the differences in tenancy called for loan terms tailored to each property. The two lenders who provided financing both appreciated the high quality of the developments, and provided a customized loan product commensurate with the top-tier status of the properties.”
About Gantry
Gantry, a privately-held company based in San Francisco, is a full-service commercial mortgage banking firm. Established in 1991 as Newmark Realty Capital, Gantry is staffed by 90 employees in its regional offices. Gantry is the correspondent/servicer on behalf of a roster of the leading life insurance, CMBS and Agency lenders in the nation, placing more than $4 billion per year in loans. Gantry’s national servicing platform exceeds $16 billion, representing over 2,000 loans located in 40 states. Gantry is rated as a Primary Servicer by Standard & Poor’s and is one of a select few non-banking/non-insurance-chartered companies with this designation.
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Gantry Media Contact:
Peter Vestal
415-946-6242 415-946-6242
pvestal@gantryinc.com
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