Property Type Office
Financing Type Permanent
Date July 6, 2022
Five-Story Building 100-Percent Leased to University of Washington Medicine; 20-Year Loan Underwritten at Attractive Fixed-Rate in What Remains a Generationally Low-Rate Climate for Long-Term Debt on Quality Assets as Upward Pressures Build
Seattle, Wash. – Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured a $35.45 million, fixed-rate, permanent loan to refinance a single tenant, five-story, 200,000-square-foot office building located at 1601 Lind Ave SW in the Seattle suburb of Renton. Property ownership recently signed a long-term lease with the University of Washington Medicine – Department of Laboratory Medicine and Pathology. The property will support education, laboratory, office, and administrative uses.
Gantry’s Mark Ritchie, Principal with the firm’s Los Angeles office, Mike Wood, Principal, and Alex Saunders, Associate, with the firm’s Seattle office, secured the permanent financing for the borrower, an entity controlled by Los Angeles-based BH Properties. The 20-year, fixed-rate loan was placed with one of Gantry’s correspondent life company lenders at an attractive rate.
“Gantry’s understanding of the CTL space provided flawless execution in helping us achieve our goal,” said Jim Brooks, President of BH Properties. “Gantry’s knowledge and experience coupled with our ability to acquire and execute created a wonderful result.”
According to Gantry’s Mark Ritchie, “Properties with a credit tenant in place continue to attract the best long-term financing options in today’s marketplace. While office, as a general sector, continues to endure levels of uncertainty from traditional lenders post COVID, single-tenant properties with substantial lease term remaining or ones able to support life science, lab and medical office functions enjoy an exception.”
“This asset stands out as a case study of traits our long-term lenders are looking for during underwriting. Particularly the long-term lease with a respected educational institution for the entirety of the asset. With the economic climate shifting as we move into the second half of 2022, it is important to recognize rates for assets of this quality remain at generational norms, even as upward rate pressures emerge,” added Gantry’s Mike Wood.
About BH Properties
Founded 30 years ago, privately held BH Properties (http://www.bhproperties.com) is a vertically integrated real estate investment company focusing on the acquisition and management of a geographically and product diverse portfolio of 105 properties across 19 states. The Los Angeles-based company, with regional offices in Phoenix, Dallas, and Houston continues to focus on value-add transactions, distressed debt, and ground leases.