Dealmaker: Gantry Secures $84.5M for Honolulu Acquisition

(Image courtesy of Gantry)

Gantry, San Francisco, secured a $63.5 million permanent loan and $21 million preferred equity commitment for the acquisition of Topa Financial Center in Honolulu.

Gantry’s George Mitsanas, Principal, and Keegan Bridges, Associate, with the firm’s Los Angeles (El Segundo) production office were retained by the seller to structure the complex financing for the buyer, Hawai’i-based real estate developer Avalon Group.

Financing for the transaction included negotiating a transfer of the remaining term of seller’s existing permanent loan, residing with one of Gantry’s long-time correspondent insurance company lenders. It maintains a fixed rate for the acquisition well beneath current market rates.

Gantry also worked on structuring the $21 million preferred equity position for the seller, Dusenberg Group. Gantry will serve as the loan servicer for both the first trust deed loan and preferred equity.

“By remaining involved in the transaction as a preferred equity provider, the seller and long-time client will remain vested in the goals for the asset established by Avalon Group, a new client through this process that will benefit from the strategic loan transfer arranged by our team that locked an interest rate significantly below current market norms, a huge win for the project team,” Mitsanas said.

Topa Financial Center includes two 20-story office towers and a connecting retail concourse, encompassing 483,776 rentable square feet.