Gantry Secures $703M Construction-to-Permanent Financing for VA Medical Office Portfolio
SAN FRANCISCO — Gantry, an independent mortgage banking firm based in San Francisco, has secured $373 million in construction financing and $330 million in permanent financing for a six-property medical office building portfolio.
The properties in the portfolio are Veterans Affairs (VA) medical clinics located in San Diego, Chula Vista and Redding, Calif.; New Port Richey, Fla.; and Tulsa, Okla. The sixth property is in an undisclosed, confidential location.
George Mitsanas and Peter Hillakas of Gantry’s Los Angeles office arranged the construction-to-permanent financing on behalf of the undisclosed borrower through a pension fund. Mitsanas says the borrower was a first-time sponsor with Gantry.
“We were engaged prior to the lease award for each of these assignments, and that allowed us to help assess the feasibility of each project and craft a financing structure, which resulted in our clients winning multiple lease awards from the federal government,” says Mitsanas.
Gantry will service both the construction and permanent loans. Details of the financing were not disclosed, but Mitsanas says the permanent financing will mature in 22 years.
According to local officials where the projects are located, the portfolio will generate several thousands of construction and permanent jobs once the facilities open in 2021.
Founded in 1991, Gantry is a primary servicer of loans for CMBS, agencies and life insurance companies. The firm announced yesterday it was acquiring Norris, Beggs & Simpson’s commercial real estate mortgage banking group, which includes production and servicing offices in Portland and Seattle.
The Veterans Health Administration (VHA), the administrative and operational arm of the U.S. Department of Veterans Affairs, is the largest integrated healthcare system in the United States.
The VHA provides care at 1,255 facilities, including 170 VA medical centers and 1,074 VHA outpatient clinics. The VHA serves more than 9 million enrolled veterans on an annual basis.
— John Nelson