Los Angeles, Calif. – Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured $15.3 million of permanent financing for a 51,000-square-foot, one-story, single-tenant flex-office building located at 601 Hawaii St. in El Segundo, adjacent to LAX within Los Angeles South Bay submarket. The property is 100% occupied by healthcare provider DaVita as its regional HQ and national training facility. The asset features extensive tenant improvements, including a sophisticated energy management system, generating 75% of energy used on site.

Gantry’s Mark Ritchie, Principal, Amit Tyagi, Senior Director, and Alicia Sabanero, Associate, with the firm’s Los Angeles office secured the financing on behalf of the borrower, a private real estate investor. The five-year, fixed-rate loan was provided by a conduit lender and features interest-only terms for the life of the loan.

According to Gantry’s Mark Ritchie, “Throughout 2023, Gantry has maintained a close collaboration with our extensive network of lenders to align with the evolving underwriting criteria for office property investments in a challenging market. For office assets with a story to tell, be that in current or projected performance, we can typically identify several financing options that meet a client’s capital requirements. Options will include life company, bank, debt fund and credit union loan programs. However, in the case of this asset’s owner, a five-year conduit loan with a fixed interest rate fulfilled their objective to navigate current market volatility and sustain stable operations. After a comprehensive evaluation of the lending solutions, it was determined that this CMBS financing best aligned with their strategic goals. While each asset presents unique considerations, Gantry strives to offer clients a range of financing solutions in the current economic climate to identify and close on the one that makes the most sense.”