Property Type Office
Financing Type Construction-To-Permanent
Date November 21, 2022
Fixed Rate Construction-to-Permanent Loan Set for 22-Year Term with VA’s Credit Tenant Lease; Marks Gantry’s Fifth Long-Term Loan Secured this Year for Real Estate Developer Specializing in Construction of New VA Facilities, with Nearly $500 million of Developments Funded in 2022
Raleigh, N.C. – Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured $180 million of construction-to-permanent financing for the development of a 250,000-square-foot, state-of-the-art, medical office facility 100% leased in a long-term agreement to the U.S. Department of Veterans Affairs (VA) for use as a Community Based Outpatient Clinic (CBOC). The 17-acre project site is located at 2700 Benson Road in Garner, N.C., a suburb of Raleigh. Construction is scheduled to commence in early 2023.
The loan is the fifth in a series of financings this year secured by Gantry on behalf of an experienced sponsor specializing in the construction of VA medical centers across the nation, with new loans totaling nearly $500 million in 2022. During the past three years, Gantry has completed in excess of $1.1 billion of project financings with various high-quality sponsors for VA medical facilities.
Gantry’s George Mitsanas, Principal, Peter Hillakas, Senior Director, and Austin Ridge, Associate, with the firm’s El Segundo (Los Angeles) production office secured this construction-to-permanent loan on behalf of the sponsor, a private real estate investment company. The 22-year loan was provided by one of Gantry’s correspondent life company lenders at an attractive fixed rate for the entirety of the loan, locked earlier this year at time of application. Gantry will act as the loan servicer throughout the loan terms.
According to Gantry’s George Mitsanas, “Gantry’s production teams have a depth of experience working with development sponsors and our correspondent lenders to fund the construction and ownership of relevant facilities through credit tenant leases with the VA and other Federal agencies. The VA facilities program is part of a strategic effort to expand access to and enhance healthcare services for our nation’s veterans. As we see volatile market conditions put more and more development projects on hold as sponsors adjust planning to current realities, critical projects like this VA facility continue to attract Class A lenders with compelling loan programs.”
“In addition to CTL financing, Gantry is heavily involved with traditional construction-to-permanent loans,” continued Mitsanas. “For example, earlier this year Gantry arranged a $90 million construction-to-permanent multifamily loan in west Los Angeles. We believe our experience and track record in all aspects of income property lending helps us create a competitive edge and ability to think outside of the box when structuring our CTL financings.”