Palo Alto Historic Office Asset Lands $13.5M Refinancing Through Gantry

Gantry has successfully arranged a $13.5 million permanent loan to refinance a historic office property in the heart of Palo Alto's competitive commercial district. The three-story building, located at 384 University Ave., spans 14,500 square feet and combines street-level retail with two upper floors of office space.

The financing comes at a critical time for the ownership group—a partnership between Big Property Ventures and Baskin Investment Group—as it replaces a loan that had reached its maturity date. Gantry's Jeff Wilcox and Joe Foley spearheaded the deal, securing capital from an institutional pension fund lender.

The five-year, fixed-rate structure offers the borrowers initial flexibility with interest-only payments in the first year, transitioning to a 25-year amortization schedule thereafter. This graduated payment approach allows ownership to optimize cash flow while establishing a clear path to principal reduction.

Key Details

• Property Address: 384 University Ave., Palo Alto, California
• Building Size: 14,500 square feet across three stories
• Configuration: Ground-floor retail with two office levels above
• Occupancy: Fully leased with staggered lease expirations
• Loan Amount: $13.5 million permanent financing
• Borrowers: Big Property Ventures and Baskin Investment Group
• Brokerage Team: Jeff Wilcox and Joe Foley of Gantry
• Lender: Institutional pension fund
• Loan Terms: Five-year fixed rate, interest-only year one, 25-year amortization following

Market Impact

This transaction underscores several important dynamics currently shaping the commercial real estate financing landscape, particularly in Silicon Valley's premier submarkets.

First, the successful refinancing demonstrates that institutional capital remains available for well-positioned assets in top-tier markets, even as lenders maintain rigorous underwriting standards. Palo Alto's University Avenue corridor continues to command strong tenant demand, and the property's full occupancy with staggered lease rolls provided the lender with confidence in long-term cash flow stability.

According to REBusinessOnline, the deal structure reflects a balanced approach between borrower flexibility and lender risk management. The interest-only period offers breathing room for ownership to potentially reposition or enhance the asset, while the extended amortization schedule signals a long-term hold strategy.

For CRE professionals, this deal highlights the enduring appeal of historic properties in established urban cores. These assets, often featuring unique architectural character and prime locations, can outperform newer inventory when maintained and leased strategically. Additionally, the involvement of an institutional pension fund lender suggests that capital sources are selectively deploying into office product—contrary to the broader narrative of office sector distress—when fundamentals align.

The staggered lease structure deserves particular attention from investors and lenders alike. By spacing tenant expirations, ownership mitigates rollover risk and maintains negotiating leverage, a feature that undoubtedly strengthened the refinancing application.