Ground Lease Financing
Foster City, CA
January 19, 2016
Gantry has arranged permanent financing in the amount of $50,000,000 for the refinance of four unsubordinated ground leases located in Foster City, California.
George Mitsanas and Tim Storey, Principals of Gantry worked on an exclusive basis with the borrower to arrange the 20 year term, fixed rate, non-recourse structured financing with a correspondent life company. The loan will be serviced by Gantry. Pricing and terms were not disclosed.
The subject loan is secured by the fee interest in four separate parcels of land totaling 14.2 acres and located in the master-planned development known as Metro Center. The four parcels are home to multiple Class A office buildings, a Safeway anchored shopping center and a Wells Fargo bank branch. Metro Center is considered to be one of the Peninsula’s premier office addresses.
According to Mr. Mitsanas, “Gantry has a lot of experience in arranging financing for ground lease deals. We have financed both the fee and leasehold interests for major office parks like Metro, hotels, apartments, regional malls and unique income property facilities.” According to Mr. Storey, “A number of major life companies expressed interest in our assignment. We ultimately went with the life company who stepped up and provided both flexibility and excellent terms.”