Gantry Secures $267M in Financing for Medical Facilities

Medical facility. Image courtesy of the Gantry

Gantry has arranged $267 million in permanent financing for four single-tenant medical office buildings.

One construction-to-permanent loan is included in the deal. The assets are 100 percent leased in long-term agreements to the U.S. Department of Veterans Affairs to be used as Community Based Outpatient Clinic (CBOC) medical facilities.

Provided by one of Gantry’s correspondent life company lenders, the 20-year notes are separate asset specific loans placed with a primary sponsor.

“Gantry has deep relationships with the lending community. We service the majority of the loans we fund,” Gantry Principal George Mitsanas told Commercial Property Executive. “With the current economic choppy waters, it is imperative for us to secure capital that will stand tall if the markets continue to worsen. When we locked up the needed financing late last year for the subject portfolio we purposely selected a capital source which met this critical criteria.”

The four properties are in New Jersey, Florida, Virginia and California.

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A glimpse into each facility

The Toms River, N.J, facility will offer 73,000 square feet at 1051 Hooper Ave. in Ocean County. The CBOC is a two-story building that will be next to a new three-story building, with tenants such as Ocean County’s Board of Social Services and the Veterans Service Bureau. The future building will take over services by the current Veterans Affair’s CBOC in the area, set for closure upon the new project’s completion.

The Lakeland, Fla., facility at 3550 Lakeland Highlands Road will total 120,573 square feet. The two-story asset will cover 2 acres. Once operational, it will serve to consolidate and expand on the services currently offered by the Veterans Affairs CBOC building located at 4237 and 4235 South Pipkin Road in Lakeland. This office is set to close once the new space is running.

The Chesapeake, Va., facility is a two-story building on 24.5 acres of land. The property will be a satellite facility to the preexisting Veterans Affairs Medical Center hospital in Hampton, Va. It is 196,183 square feet in the Chesapeake Regional Healthcare campus located on Knells Ridge Boulevard.

The Santa Rosa, Calif., facility is a one-story building on just over 8 acres of land that was completed in early 2022. This 57,579-square-foot location will support the Veterans Administration services for the North Coast region of California.

George Mitsanas, principal, along with Peter Hillakas, senior director, and Austin Ridge, associate, with Gantry’s Los Angeles office represented the borrower. In an interview with Commercial Property Executive, Mark Ritchie, principal with Gantry’s Los Angeles Office, talked about how we can expect to see lenders competing for loans tied to industrial properties continuing as a trend throughout 2022.