Dealmaker: Gantry Secures $24M for California Offices

Gantry, San Francisco, secured $23.5 million in financing for two California office buildings.

Burbank, Calif. Asset

In Burbank, the firm secured $13 for a three-story building just north of the Burbank Media District. Built in 1990 and renovated in 2013, the 31,400-square-foot asset is 100 percent owner-occupied by local media management company Visual Data Media Services. The property is in a strong infill office market with 5 percent vacancy.

Gantry Principals Adam Parker and Andy Bratt and Senior Associate Chad Metzger arranged the regional bank loan with a five-year term amortized over 25 years with a flexible prepayment premium.

Parker called the loan request’s timing a challenge. “We were marketing the request at the end of March, while most of the country was under shelter-in-place orders, and many lenders were exclusively working on PPP loans for their existing clients,” he said. “Ultimately, we were able to find the right lender that recognized the property’s superior location while also understanding that the tenant was positioned to thrive in a pandemic environment that forced many people to stay in their homes streaming content.”

Gantry also secured $10.5 million to refinance a 45,300-square-foot multi-tenant office building in San Rafael. Principals Robert Slatt and Jeff Wilcox and Senior Associate Charlie Kokernak arranged the 10-year, 30-year amortization term loan through a correspondent life insurance company.

“We built a relationship with this borrower when we processed the loan assumption back in 2016,” said Slatt. “This new loan assignment was marketed prior to the COVID-19 pandemic and the ensuing shelter-in-place orders. Those presented challenges as we navigated through the process, but the lender stood tall and honored the original transaction with no changes or added structure.”

The six-story property at 1299 Fourth Street dates to 1963 and is 98 percent occupied.