Property Type Office
Date September 8, 2022
Financings Include Permanent Loans for Properties in California, New Jersey, and Florida and a Construction-to-Permanent Loan for a Virginia Facility; High-Quality, Well-Sponsored Single Credit Tenant Leased Assets Continue to Attract Superior Rates and Terms for Long-Term Debt
Los Angeles, Calif. – Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured a total of $267 million in permanent financing, including one construction to permanent loan, for a four-building portfolio of single tenant medical office properties 100% leased in long-term agreements to the U.S. Department of Veterans Affairs (VA) for use by the federal agency as Community Based Outpatient Clinic (CBOC) medical facilities.
Gantry’s George Mitsanas, Principal, Peter Hillakas, Senior Director, and Austin Ridge, Associate, with the firm’s Los Angeles office represented the borrower. The 20-year loans were provided by one of Gantry’s correspondent life company lenders as separate asset specific loans placed with a primary sponsor.
“Long-term, credit tenant lease agreements with experienced developers capable of delivering state-of-the-art facilities that meet the budget and mission of the VA are the key element to a successful public-private partnership model expanding medical services for veterans across the country,” said George Mitsanas, Principal with Gantry. “In the current market climate, any long-term credit tenant lease is extremely attractive to lenders targeting their allocations to long-term, fixed rate debt at what remain attractive rates, even with the shifts in the current market cycle. The borrower is an experienced sponsor for these projects, and a key partner in the process with VA and other government agencies they serve, which is a critical element in the underwriting the loans. These loans to a vested and experienced sponsor ensure that these assets are well positioned to serve our veterans for decades to come.”
Santa Rosa, Calif. – This CBOC is a 57,579-square-foot facility located at 2285 Challenger Way in Santa Rosa that will support Veterans Administration services for California’s North Coast region. The facility is a single, one-story building situated on 8.06-acres and was completed in early 2022.
Chesapeake, Va. – This CBOC is a 196,183-square-foot, state-of-the-art facility located within the Chesapeake Regional Healthcare campus located on Knells Ridge Boulevard in Chesapeake. The facility is a single, two-story building on 24.5-acres and when completed will serve as a satellite facility to the Veterans Affairs Medical Center hospital located in Hampton, Va.
Lakeland, Fla. – This CBOC is a 120,573- square-foot, state-of-the-art facility located at 3550 Lakeland Highlands Road in Lakeland. The facility is single, two-story building on 26-acres and when operational will serve to consolidate and expand services currently provided by two Veterans Affairs CBOC facilities set for closure, located at 4237 and 4235 South Pipkin Road in Lakeland.
Toms River, N.J. – This CBOC is a 73,000-square-foot, state-of-the-art facility set for development at 1051 Hooper Avenue in Toms River township in Ocean County. The facility is single, two-story building that will be adjacent to a new 121,000-square-foot, three-story building that will house Ocean County’s Board of Social Services, as well as the county’s Veterans Service Bureau. The future development will serve to consolidate and expand services provided by the current Veterans Affairs CBOC operations located at 970 NJ-70 in Brick township, which is set for closure upon completion of the new development.