Pair of Class A Carlsbad Office Buildings 92% Leased at Acquisition; Insurance Company Loan Offers Interest Only Period, Fixed Rate and Prepayment Flexibility

Carlsbad, Calif. (May 20, 2025) – Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured an $11 million permanent loan to finance the acquisition of two class A office buildings located at 1902 and 1903 Wright Place in Carlsbad, a North County coastal suburb of San Diego. The pair of midrise office buildings encompass a total of approximately 100,000 rentable square feet and are part of a highly-amenitized, two-building campus that includes an outdoor lap pool, hot tub, barbeque area, pickleball/sport court, social spaces and an on-site fitness center with men's and women's showers at each building, all in close proximity to I-5 and the beach. The stabilized multi-tenant buildings were acquired at 92% occupancy.

Gantry’s Andy Bratt, Principal, and Sean Kuang, Associate, with the firm’s Irvine production office represented the borrower, a private real estate investor. The seven-year non-recourse loan was secured via one of Gantry’s insurance company lenders and features an initial three-year interest only period followed by 25-year amortization with a step-down prepayment penalty .

According to Gantry’s Andy Bratt, "There is no question that office continues to be the most challenging asset class to finance post pandemic. However, the office market continues to evolve. Gantry is successfully underwriting office loan requests through its extensive network of life insurance companies. Life Co’s are attracted to high quality assets in strong submarkets where a reset of basis has occurred and demonstrate high cap rates and DSCR. The Wright Place buildings exemplify an experienced sponsor acquiring performing assets at conservative leverage that meets conservative underwriting criteria. The building’s diverse tenant base, high average weighted lease terms, 92% occupancy, and strong cap rate going in allowed us to create a competitive market and secure a very attractive fixed rate loan with an interest only component and flexible prepayment terms for the cycle. Consistent with life company financing and their willingness to rate lock at application, no deal terms, proceeds, or rates were affected by volatility during the closing period and the lender closed as originally quoted."