Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured a loan modification with improved loan terms reflecting property stabilization at the boutique luxury 801 Pearl class A apartments located at 801 Pearl St. in the heart of La Jolla Village. The modification assignment followed Gantry’s role securing construction financing in 2022 and construction take-out financing in 2024. 

The recently completed, two-story complex features a mix of 26-units in studio, 1-bedroom and 2-bedroom floorplans and includes approximately 3,400 square feet of street level commercial space. The property sits at a high-barrier-to-entry, infill location in a pedestrian-friendly district offering restaurant, entertainment, and natural amenities including nearby Windansea Beach and La Jolla Cove.

Gantry’s George Mitsanas, Principal, and Doug Tisdale, Director, with the firm’s Los Angeles (El Segundo) production office represented the borrower, a private real estate investor. The loan modification and reset three-year term was negotiated with one of Gantry’s correspondent insurance company lenders and features interest only terms and prepayment flexibility. Gantry will service the loan.

According to Gantry’s Doug Tisdale, “With the apartments stabilized and the commercial tenant now in occupancy and paying rent for the ground floor space, our client sought to pay down a portion of the existing interest-only, variable rate loan tied to SOFR from $14.4 million to $13.5 million to secure a lower interest rate from the current lender. Leveraging our strong relationship with our insurance company correspondent, Gantry crafted a loan modification that met the borrower’s objectives of using a loan paydown to lower the interest rate given the stabilized nature of the asset while extending some of the original, favorable loan terms.”