Dealmaker: Gantry Secures $190M for Seattle Mixed-Use Asset

Gantry, San Francisco, arranged a $190 million loan to recapitalize the Carillon Point mixed-use campus in Kirkland, Wash.

The 26-acre property includes Class A office, boutique hotel and retail space fronting Lake Washington as well an active 200-slip marina.

Gantry Principal Mike Taylor and Senior Associate Patrick Taylor with the firm’s Seattle office placed the 15-year loan with Principal Real Estate Investors, Des Moines, Iowa.

“The ownership group wanted to take advantage of the current low interest rate environment to repatriate some of their equity in the property and lock in today’s rates for the long term,” Mike Taylor said. “Although the loan was too large for a number of the traditional insurance company lenders we typically go to, there were a number of competitive quotes. Principal Real Estate Investors pursued the transaction very aggressively from the outset, offered the most compelling loan term and closed the transaction as originally quoted.”

Mike Taylor noted Gantry had arranged the previous financing for the borrowers in 2009 with a different lender during the depths of the financial crisis. “This time around the ultimate loan terms were quite a bit better,” he said.

Carillon Point has 440,000 square feet of Class A office space in five buildings and the lakefront Woodmark Hotel in a sixth building. All six buildings include programmed retail locations tied to the marina. The asset occupies 26 acres on the Lake Washington waterfront.

“Principal Real Estate Investors is focused on identifying high-quality assets within top-tier locations, and Carillon Point certainly fits those criteria,” said Joe Koenigs, Managing Director with Principal Real Estate Investors.