Dealmaker: Gantry Secures $28 Million to Refinance Medical Office Building in the Los Angeles Area

(Photo courtesy of Gantry)

Gantry, San Francisco, secured a $28 million permanent loan to refinance the Torrance Memorial Lundquist-Lurie Cardiovascular Center in Torrance, Calif.

Located at 2841 Lomita Boulevard in Torrance, a South Bay submarket city within Los Angeles County, the three-story, 65,000-square-foot medical office building is 100% leased by physicians and technicians providing outpatient services on behalf of Torrance Memorial Medical Center, a full-service hospital affiliated with Cedars Sinai.

Gantry Principal George Mitsanas, Principal Braden Turnbull and Associate Alicia Sabanero secured the financing for the the private real estate company borrower. The 10-year permanent loan was placed with one of Gantry’s correspondent insurance company lenders at a fixed rate featuring 30-year amortization and pre-payment flexibility after year seven.

“Medical office remains one of the most desirable asset types for our insurance correspondents because of its strong demand fundamentals,” Mitsanas said. He noted that while many office property types from suburban low rise to central business district towers are struggling with post-COVID market shifts and the higher cost of debt, properties supporting specialized medical service providers remain a vital component to our health care system. “These properties continue to demonstrate strong leasing and need-driven occupancy. Our sponsor client has a long-term lease in place with a subsidiary of one of the top hospital operators in the nation, which allowed us to shop this loan with several of Gantry’s insurance correspondents, ultimately resulting in a loan that maximized both leverage and proceeds.”