Property Type Office
Date January 19, 2016
Gantry has secured permanent financing in the amount of $44,500,000 for the refinance of ten properties housing various government agencies in Michigan, Ohio, and Florida.
Gantry has secured permanent financing in the amount of $44,500,000 for the refinance of ten properties housing various government agencies in Michigan, Ohio, and Florida. George Mitsanas, Braden Turnbull, and Amit Tyagi worked on an exclusive basis, on behalf of the borrower, to arrange the 10 year term, fixed rate, non-recourse financing through a CMBS loan execution. Loan proceeds were sufficient to refinance the properties’ existing debt together with substantially recapturing the borrower’s equity. Gantry will subservice the loan.
Developed on a build-to-suit basis, all of the ten properties are leased to the General Services Administration (“GSA”) and house federal agencies including the Social Security Administration, Internal Revenue Service, Immigration and Customs Enforcement, and Border Patrol. While the GSA’s US government credit is highly sought after in the capital markets, GSA lease financing presents significant financing challenges relating to special purpose improvements, secondary and tertiary market locations, high loan-basis and lease termination provisions among other issues. By structuring the subject financing to diversify these risks across a diverse portfolio of properties the borrower was able to achieve maximum loan proceeds together with an amortization that extends over 10 years beyond the portfolio’s weighted average lease maturity.
Gantry is a full service mortgage banking firm with a strong lineup of correspondent lenders utilizing Gantry’s production, closing and servicing capabilities. Established in November 1991, Gantry is currently staffed by over 50 employees in regional offices throughout the western United States. The company services over $6 billion representing 800 loans. Gantry has been rated as a Primary Servicer by Standard and Poor’s and is one of a select few non-banking / non-insurance chartered companies with this designation.
For more information on this transaction, please contact Braden Turnbull at 310-846-5301, George Mitsanas at 310-846-5299 or Michael Heagerty at 415-956-9854.