Gantry Arranges $180M in Construction Financing for VA Medical Clinic Near Raleigh
GARNER, N.C. — Gantry has arranged $180 million in construction financing for the development of a 250,000-square-foot medical office facility in Garner, a suburb just south of Raleigh.
The U.S. Department of Veterans Affairs (VA) has fully pre-leased the property as a community-based outpatient clinic (CBOC) in a long-term agreement. Construction at the 17-acre site is scheduled to begin early next year.
Gantry’s George Mitsanas, Peter Hillakas and Austin Ridge secured the construction-to-permanent loan on behalf of a private real estate investment company. One of Gantry’s correspondent life company lenders provided the 22-year loan, which features a fixed rate for the entirety of the loan. The rate was locked earlier this year at time of application. Gantry will act as the loan servicer throughout the loan term.
The loan is the fifth in a series of financings this year that Gantry secured on behalf of a sponsor specializing in the construction of VA medical centers, with new loans totaling nearly $500 million in 2022. During the past three years, Gantry has completed over $1.1 billion of project financings for VA medical facilities with various borrowers.
“The VA facilities program is part of a strategic effort to expand access to and enhance healthcare services for our nation’s veterans,” says Mitsanas. “As we see volatile market conditions put more and more development projects on hold as sponsors adjust planning to current realities, critical projects like this VA facility continue to attract Class A lenders with compelling loan programs.”
— Kari Lloyd