February 10, 2020
Gantry, the largest independent commercial mortgage banking firm in the U.S., has arranged $373,000,000 in construction and $330,000,000 in permanent financing for a six-building medical office portfolio leased by the U.S. Government. The portfolio consists of new Veterans Affairs medical clinics in Chula Vista, CA, San Diego, CA, Redding, CA, New Port Ritchie, FL, Tulsa, OK and an undisclosed confidential location.
Working on an exclusive basis, George H. Mitsanas, Principal, and Peter Hillakas, Senior Director, in Gantry’s Los Angeles office, arranged the financing with a correspondent pension fund. Both the construction and permanent loans will be serviced by Gantry.
According to Mr. Hillakas, “We were engaged prior to the lease award for each of these assignments and that allowed us to help assess the feasibility of each project and craft a financing structure, which resulted in our clients winning multiple lease awards from the federal government. In addition, our deep knowledge of the construction process was very valuable throughout the construction negotiation and financing process.”
According to local officials, where the projects are located, the portfolio will generate several thousands of construction and permanent jobs once the facilities are opened in 2021. “It turned out to be a wonderful opportunity to bring our skill set and experience for construction projects that will employ several thousand construction workers who are building long term medical clinics for our veterans,” says Mitsanas. “Working on this project was a team effort with a first-time sponsor for our firm. Our financing vehicles not only provide maximum flexibility, but as the loan servicer, we will be with the deals until the loans mature in 22 years.”