Property Type Office
Financing Type Permanent
Date August 29, 2022
Gantry Inc. Arranges Construction Takeout Financing with Life Company Lender for 152,000-Square-Foot, Class A, LEED Gold Office Property in Peery Park; Synopsys, Inc. (NASDAQ: SNPS) Recently Inked Long-Term Lease for Entirety of Building Adding to Sunnyvale Campus
Sunnyvale, Calif. – Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured $97 million of permanent financing to retire construction debt for a 152,000-square-foot, four-story, LEED Gold certified office building in Sunnyvale’s Perry Park office district. The non-recourse, balance sheet loan is structured with two fundings. The building is located at 675 Almanor Ave, directly adjacent to the Synopsys’ current three-building campus at the Pathline Park development, also in Sunnyvale.
Gantry’s Tony Kaufmann, Director, with the firm’s San Francisco production office arranged the financing on behalf of the borrower, Dollinger Properties. The permanent interest-only loan was structured with flexible prepayment and term extension options. The loan was provided by a life company lender that locked the borrower’s rate 90 days in advance of closing. provided by one of Gantry’s correspondent life company lenders and features a sub 4.4% rate with interest only terms and options to extend if desired.
According to Gantry’s Tony Kaufmann, “Life company lender’s willingness to lock rate at term sheet and/or application is a key differentiator for borrowers financing assets in what has become a more volatile rate environment. The certainty of execution offered by these capital sources is unparalleled in today’s market. While lender appetite for office remains selective, lenders are still able to offer competitive terms in markets with solid fundamentals and leasing momentum. Emerging from the pandemic, Silicon Valley’s office market has been burgeoning with leasing activity. We have witnessed numerous tech tenants taking up large swaths of space, despite some companies still maintaining hybrid work-from-home policies. Silicon Valley’s access to nearby desirable suburban communities has proven attractive for prospective tenants and their employees. Silicon Valley’s success has overshadowed many of the challenges facing the Bay Area’s more CBD-oriented office. For 675 Almanor in particular, the location and Class-A quality of the building were very attractive to lenders, as were the merit of the developer and profile of the tenant.”