June 22, 2020
Gantry, Inc. secured $33,300,000 in permanent financing for two adjacent buildings in San Francisco’s East Bay. The assets include a 70,000-square-foot special purpose office building and a 65,000-square-foot medical office building. Both are held under long-term ground leases and were built by the borrower, an unnamed Bay Area developer.
Gantry’s Andrew Mekjavich and Ben Johnson worked to structure two 10-year fixed rate loans, with two 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, 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.”
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