Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured a $9 million life company loan to retire a CMBS loan on Vail Ranch Town Square, a low-rise suburban office building located at 32605 Temecula Parkway in Temecula, a prime location on the city’s highly-trafficked commercial corridor connecting the community to I-15. The three-story, 55,000-square-foot, Mediterranean-style building is 100%-leased in a multi-tenant format to a range of medical, dental, behavioral health, and professional service tenants. The location offers abundant surface parking and ready access to nearby retail, dining, and residential neighborhoods.

Gantry’s Tony Kaufmann, Principal, Toby Judge, Associate, and Jake Davis, Associate, with the firm’s San Francisco production office represented the borrower, a private real estate investor in Southern California. The fixed rate, three-year loan featured a rate lock at Application that protected the borrower in a rising rate environment. Gantry will service the loan for the lender.

According to Gantry’s Tony Kaufmann, “The case for office continues to improve and Gantry’s roster of life company lenders are showing an increasing willingness to fund new loans on performing assets. For this sponsor client, trading a rigid CMBS structure for the stability and flexibility of a life company loan met their preferred path forward in support of this legacy hold investment. The multi-tenant format of the building, occupancy stickiness, staggered rent roll, historic performance and vested sponsorship were the key elements for successfully underwriting a life company permanent loan that included cash-out proceeds.”