Clinic business

Gantry arranges $180 million construction financing for VA medical clinic near Raleigh

The new medical office is 100% pre-leased to the US Department of Veterans Affairs (VA). Construction is expected to begin in early 2023.

GARNER, NC — Gantry has arranged $180 million in construction financing for the development of a 250,000 square foot medical practice in Garner, a suburb just south of Raleigh.

The US Department of Veterans Affairs (VA) fully pre-leased the property as a community outpatient clinic (CBOC) under a long-term agreement. Construction on the 17-acre site is expected to begin early next year.

Gantry’s George Mitsanas, Peter Hillakas and Austin Ridge secured the build-permanent loan on behalf of a private real estate investment firm. One of Gantry’s life insurance company correspondent lenders provided the 22-year loan, which has a fixed rate for the entire loan. The rate was locked earlier this year at the time of the request. Gantry will act as loan manager for the duration of the loan.

The loan is the fifth in a series of financings this year that Gantry has secured on behalf of a sponsor specializing in building VA medical centers, with new loans totaling nearly $500 million in 2022. Last three years, Gantry has completed more than $1.1 billion in project financings for VA medical facilities with various borrowers.

“The VA Facilities Program is part of a strategic effort to expand access and improve health services for our nation’s veterans,” Mitsanas says. “As we see volatile market conditions putting more and more development projects on hold as sponsors adjust planning to current realities, critical projects like this VA facility continue to attract Class A lenders with compelling loan programs.”

—Kari Lloyd