Gantry has arranged a permanent refinancing for a historic office building at 384 University Ave. in Palo Alto, securing a $13.5 million loan to address an upcoming maturity. The property, which combines street-level retail space with upper-level offices, is positioned in a prime downtown location and is reported to be fully leased.
The financing was structured as a five-year, fixed-rate loan provided by an institutional pension fund lender. Loan terms include an initial interest-only period in the first year, followed by 25 years of amortization. The capital is being used to refinance existing debt coming due, giving the borrower a new long-term capital structure.
Principal Jeff Wilcox and senior associate Joe Foley from Gantry’s San Francisco production office represented the borrower, identified as Big Property Ventures and Baskin Investment Group. Their role included sourcing the lender and negotiating the permanent loan on behalf of the ownership group.
The three-story building offers approximately 14,500 square feet of rentable space. Ground-floor retail fronts the street level, with two floors of office space above. The property is described as being 100% leased, underscoring stable in-place cash flow at the time of refinancing.
Commenting on broader market conditions, Wilcox noted that Gantry is observing a marked improvement in the outlook for office financing, with more lenders re-engaging in the sector after a period of curtailed originations. He indicated that well-leased properties in strong locations are attracting competitive terms for permanent refinancing or purchase loans, while assets that are still in lease-up but nearing stabilization are seeing interest from lenders offering bridge debt solutions, provided debt service coverage requirements can be met.
The use of institutional pension fund capital for this loan and the full leasing of the property together illustrate how well-positioned office assets in established downtown locations can secure refinancing, even as other parts of the office market continue to face tighter underwriting standards. The transaction reflects selective lender appetite for stabilized properties with durable income profiles.
Photo credit for the property image is attributed to Rapp Properties, as reported in the original source.
