Office Ground Lease
April 15, 2023
Prime Fremont Parcel Home to 121,000-Square-Foot Office Building with Street Level Retail; Life Company Lenders Remain Active in Disrupted Market Climate, Underwriting to Sponsorship Quality and Asset Performance Across All Property Classes, Including Office in Select Cases.
Seattle, Wash. – Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured a $11.7 million permanent loan to refinance the ground lease supporting a Class A office building in Seattle’s Fremont neighborhood. The property, located at 3400 Stone Way N, is occupied by a five-story, 121,000-square-foot office building featuring 16,700 square feet of fully leased, street-level retail space. The office component is currently occupied as the headquarters for Seattle-based Brooks Sports Inc.
Gantry’s Mike Wood, Principal, and Alex Saunders, Associate, with Gantry’s Seattle production office represented the borrower, a private real estate investment entity. The 10-year, fixed rate loan was provided by one of Gantry’s correspondent life company lenders.
According to Gantry’s Mike Wood, “Life companies are uniquely positioned in the current market cycle to refinance at the best rates for performing assets facing a pending maturity. Refinancing office assets in the current market cycle will be challenging, and borrowers should be prepared to tell their story and demonstrate future relevance. Property, historic and continued performance of the office and retail components of the structure tied to a seasoned and well capitalized sponsor for the ground lease attracted one of our top correspondent life companies after a careful review of options across all lender types.”