Two Class B Office Buildings
San Francisco, CA
June 4, 2020
Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured $35,000,000 in permanent financing for two Class B office buildings located in San Francisco, CA. Located at 1301 Sansome Street and 945 Battery Street, both collaterals are situated just north of San Francisco’s Financial District and are 0.2 miles from each other.
George Mitsanas, Principal, and Josh Natker, Senior Associate, in Gantry’s Los Angeles office, worked with the borrower in securing the 15-year term, 30-year amortization with a correspondent life insurance company. The loan will be serviced by Gantry.
Mitsanas noted, “We are pleased to refinance the assets for the third time since the mid 2000s. Our process for the current financing started in late 2019 and we reached an agreement with the lender in February of 2020. As we are preparing for loan committee, the bottom fell out of the financial markets because of the pandemic caused by COVID-19. Fortunately, our life company correspondent stood tall and closed the deal in May on the exact terms bargained for in the loan application. Gantry has tremendous experience in financing office buildings of all classes throughout the nation. One of our recent San Francisco office financings was the $200M purchase money loan for 55 2nd Street.”
1301 Sansome is a six-story, including penthouse, office building comprised of 38,868 square feet. Built in 1910-1940 and later renovated in 1999, the urban office building is currently 100% leased to a single tenant, Grove Collaborative. Launched in 2016, Grove Collaborative creates innovative more-natural products and offers a curated selection of healthy home essentials like cleaning supplies and personal care products.
945 Battery is also a six-story, including penthouse, office building comprised of 67,966 square feet. Built in 1911 and later renovated in 1999, the office building is currently leased to Second Life and Lightstep. Second Life is an online virtual world, developed and owned by Linden Lab. Lightstep provides software solutions that help organizations stay in control of their systems.
Mitsanas added, “The local and experienced sponsor is best in class. Having quality local ownership gives us comfort knowing that our lender’s collateral will stay leased to solid tenants who pay their rent.”