Property Type Office
Date February 8, 2022
“Office properties have continued to endure the brunt of post COVID disruption, along with retail and hospitality of course, and yet opportunities remain for established sponsorship to find relevant financing solutions in the current debt markets.”
Anchored by Co-Working Provider Workpliciti, Property Features 83,000 Square Feet of Office Space Tailored to Serve Tenants in Chandler’s Fast Growing Price Road Tech Corridor: Debt Fund Financing Features Five-Year Term with Fixed Rate and No Prepayment Penalties
Chandler, Ariz. – Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured $15.5 million in financing for the acquisition of an 83,000-square-foot, three-story suburban office building located at 3377 South Price Rd. in a prime location to serve Chandler ‘s fast growing Price Road Tech Corridor tenant community. The multi-tenant property is anchored by Workpliciti, a Chandler-based co-working space provider.
Gantry’s Craig Hoebing, Director, Chad Metzger, Senior Associate, and Kevin Valenzuela, Associate, with the company’s Phoenix production office, secured the loan on behalf of the borrower, a private investor and long-standing Gantry client. Debt fund Avana Companies provided the five-year loan at an attractive fixed rate featuring a 25-year amortization with no pre-payment penalties. The loan is full recourse with an earn out covenant at relevant operational milestones.
According to Gantry’s Craig Hoebing, “Office properties have continued to endure the brunt of post COVID disruption, along with retail and hospitality of course, and yet opportunities remain for established sponsorship to find relevant financing solutions in the current debt markets. As in all things real estate, location and local market fundamentals will always require articulation. After our team reviewed the borrower’s needs and operating goals for the property with a broad spectrum of lending sources, Avana Companies emerged as the right fit with a completive rate and amenable terms. Their underwriting reflected the established value of the property, the quality of its sponsorship, and the viability of its business plan. This funding will allow sponsorship to move this property forward to full stabilization with earn out milestones as an incentive.”