Gantry Secures $180M for Suburban Raleigh MOB Project
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The Department of Veterans Affairs will be the sole tenant upon the project’s completion.
Gantry has arranged $180 million in construction-to-permanent financing for the development of a 250,000-square-foot Veterans Affairs medical office building in Garner, N.C.
The medical facility is 100 percent leased under a long-term agreement to the U.S. Department of Veterans Affairs, to be used as a Community Based Outpatient Clinic.
The project is slated to break ground in early 2023 and the developer is a joint venture between Atriax and PPGG.
Gantry arranged the financing on behalf of the sponsor and will act as loan servicer throughout its full term. According to Wake County records, UMB Bank provided a 22-year, fixed-rate loan, locked earlier this year at time of application. The Gantry team included Principal George Mitsanas, Senior Director Peter Hillakas, alongside Associate Austin Ridge.
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George Mitsanas said in prepared remarks that the Veterans Affairs medical facilities are part of a strategic plan that will ensure access to health-care services for the country’s veterans and despite the current challenges in the market, VA projects still attract lenders willing to offer loan programs.
The property will rise at 2700 Benson Road, 10 miles from downtown Raleigh, with access to Interstate 40. Other medical facilities in the area include Reyer Medical Associates, McClure Orthodontics, with WakeMed Raleigh Campus 13 miles away.
Gantry’s financing deals for vet clinics
This is the fifth financing secured this year by Gantry on behalf of a sponsor specialized in VA medical facilities across the U.S., with total loans adding up to nearly $500 million. In September, Gantry arranged $267 million in permanent financing for four medical office buildings leased to the U.S. Department of Veterans Affairs, located in New Jersey, Florida, Virginia and California.
Two years ago, Gantry arranged another construction loan of $730 million, for a medical office portfolio. All six clinics were to be leased to the U.S. Department of Veterans Affairs in California, Florida and Oklahoma.