Property Type Retail
Financing Type Construction-Perm
Date November 30, 2017
Designed by the Los Angeles office of DLR Group, the project site is located on approximately 2.2 acres of high profile street frontage on one of the area’s major arterials at 707 N. Sepulveda Blvd. in Manhattan Beach, CA. Construction is set to begin immediately, with completion anticipated by November 2018.
New Project 100 Percent Pre-Leased to Gelson’s Markets and First Republic Bank; Development of 34,000 Square Foot Infill Property Fronting Sepulveda Boulevard to Commence Immediately
LOS ANGELES, CA – Gantry™, the largest independent commercial mortgage banking firm in the western U.S., has secured $26 Million of development financing for a new infill retail center in Manhattan Beach.
The leading owner and developer of value-add and infill retail centers in high barrier to entry California markets, has pre-leased the strategically located 34,000 square-foot development to Gelson’s Markets and First Republic Bank. Designed by the Los Angeles office of DLR Group, the project site is located on approximately 2.2 acres of high profile street frontage on one of the area’s major arterials at 707 N. Sepulveda Blvd. in Manhattan Beach, CA. Construction is set to begin immediately, with completion anticipated by November 2018.
In the transaction, a Gantry team from its Los Angeles production office featuring principals George Mitsanas and Braden Turnbull arranged the $26 million, 8-year loan with a correspondent life insurance company. Gantry will also service the loan.
“The borrower is an experienced retail owner and developer with an extensive track record of success,” said Mitsanas. “Their ability to secure agreements with two high quality tenants in Gelson’s and First Republic made this project extremely attractive to the top tier of institutional capital sources. This type of strategic assemblage, where a premier location meets top-performing tenants, is critical to successfully funding retail projects in the contemporary market cycle. While challenges face the retail industry at large in an era of evolving consumer preferences, projects with these characteristics continue to find abundant capital resources at what remain as historically low interest rates. Gantry has extensive experience in arranging construction loans throughout the nation. Developers are attracted to our ability to provide capital sources where our financing vehicles typically include both construction and permanent loans taking all interest rate risk off the table. In addition, because we service most loans we arrange, our clients know who to call if issues ever arise during the life of a loan we arrange.”