Gantry Secures $421M for 3 VA Outpatient Clinics
Construction is underway on the three facilities.
Gantry has secured $420.7 million in construction-to-permanent financing for three new U.S. Department of Veterans Affairs Community-Based Outpatient Clinic properties totaling 405,077 square feet in Texas, Utah and Virginia.
Construction is underway on the facilities with completion expected between 2027 and 2029. The properties are located at 4425 University Blvd., Round Rock, Texas, spanning 63,007 square feet; 3711 State St., South Salt Lake, Utah, spanning 108,070 square feet; and Northampton Boulevard at Premium Outlets Boulevard, Virginia Beach, Va., spanning 234,000 square feet.
A CBOC is a VA-operated, funded or reimbursed outpatient site of care that is separate from a VA medical facility. CBOCs can provide primary, specialty, subspecialty, mental health or a combination of healthcare delivery services.
The three loans are all fixed-rate, 22- to 23-year notes and were secured from one of Gantry’s life company correspondent lenders. Gantry will service the loans for the unidentified lender.
Gantry Principal George Mitsanas said in prepared remarks the construction-to-permanent loan in a credit tenant lease structure offers a time-tested approach to the delivery of large-scale commercial real estate projects such as the new VA facilities.
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Mitsanas represented the borrower along with Senior Director Peter Hillakas and Associate Keegan Bridges.
Track record with government properties
These facilities represent the 38th, 39th and 40th purpose-built government facilities financed by Gantry. The independent commercial mortgage banking firm has arranged more than $2 billion in financing for government facilities since 2020, including projects serving the VA, FBI and other agencies.
In September 2022, Gantry arranged $267 million in permanent financing for four single-tenant medical office buildings to be leased in long-term agreements to the VA for use as CBOC facilities. One construction-to-permanent loan was included in that deal. The 20-year notes were also provided by one of Gantry’s correspondent life company lenders for properties in Toms River, N.J.; Lakeland, Fla.; Santa Rosa, Calif.; and Chesapeake, Va.
Later that year, Gantry arranged $180 million in construction-to-permanent financing for the development of a 250,000-square-foot VA medical office building in Garner, N.C., to be fully leased as a CBOC. Gantry arranged the financing on behalf of the sponsor, a joint venture between Atriax and PPGG. UMB Bank provided the 22-year, fixed-rate loan, according to Wake County records.
Spotlight on recent refi deal
In other Gantry news, last week the firm refinanced a fully leased six-property industrial and office portfolio in Southern California and Texas with a $110 million permanent loan for the owner of the assets, Bixby Capital Management. The portfolio includes five single-tenant industrial assets in Southern California and Texas submarkets and Bixby’s office headquarters building in Newport Beach, Calif.
The 12-year, fixed-rate, non-recourse loan was secured from one of Gantry’s longtime correspondent insurance company lenders and featured full-term interest-only. Gantry will service the loan on behalf of the lender, which was identified by Yardi Matrix as State Farm.
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