Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured a $13.5 million permanent loan to refinance a timely maturity on a historical office building located at 384 University Ave in Palo Alto. The three-story property offers approximately 14,500 square feet of rentable space in a prime downtown location, featuring street-level retail with two office floors above. The property is currently 100% leased with a staggered lease roll.

Gantry’s Jeff Wilcox, Principal, and Joe Foley, Senior Associate, with the firm’s San Francisco production office represented the borrower, Big Property Ventures and Baskin Investment Group. The five-year, fixed rate loan was provided by an institutional pension fund lender with terms including first year interest only followed by 25-year amortization. 

According to Gantry’s Jeff Wilcox, “We have seen a dramatic improvement to the case for office, with a growing number of lenders returning to the asset class after a pause on new originations in recent years. For well leased properties in quality locations, we are reviewing competitive options for permanent refinance or purchase and bridge debt options for properties still in transition but nearing stabilization with requisite DSCR. For this asset, attentive management and a strong leasing program from experienced sponsors like Big Property Ventures and Baskin Investment Group support the operation of a well-maintained, unique historic building with character. Located in a vibrant, pedestrian-friendly downtown district, the property checks all the boxes for a permanent financing option.”