SAN FRANCISCO, CA - Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured a total of $42.7 million of new Agency financing in two separate transactions from diverse sponsors for assets in Spokane, Wash. and Kalispell, Mont.
The first transaction provided $26.25 million to refinance the Beaumont-Biltmore Apartments, a 270-unit multifamily property in Spokane’s South Hill neighborhood. Originally built in 1994, the fully stabilized garden-style apartment community offers a range of 1, 2 and 3-bedroom units.
The second transaction provided $16.45 million in permanent financing for the recently completed and stabilized Landings on Two Mile, a 108-unit apartment project in Kalispell, a town known as the gateway to Glacier National Park and other regional outdoor amenities.
Gantry’s Demetri Koston, principal with the company’s Spokane production office serving the Inland Northwest, secured the loans on behalf of the borrowers, both private investment entities. Each non-recourse loan was placed with Fannie Mae. The Spokane financing features interest only terms and a sub-3% floating rate at closing for the ten-year loan. The Kalispell financing features a 15-year term and fixed rate for the life of the loan.
According to Gantry’s Demetri Koston, “Multifamily assets have consistently performed in the post COVID era and have remained a preferred asset class for lenders of all types as a result. Agency lenders have remained competitive in an environment where life companies, banks and credit unions continue to offer viable options for these asset types. We reviewed all options with the borrowers to arrive at the optimized financing solutions for their legacy hold interests, which in both cases came from Agency lenders.
“For both borrowers, the decision to recapitalize at current market valuation rather than sell these assets resulted in a win-win, as they were able to secure significant cash out at the time of closing, along with positioning their properties for consistent cash flow over the lifetime of the loans. Both transactions point to a relevant consideration in the current cycle. For any property investor currently reviewing maturing or near maturing debt, a competitive market continues to feature generationally low rates and options from a variety of sources moving into 2022.”
About Gantry: Gantry, a privately held company headquartered in San Francisco, is a full-service mortgage banking firm with an extensive lineup of correspondent lenders utilizing Gantry’s production, closing and servicing capabilities. Established in 1991, Gantry is currently staffed by nearly 90 professionals in regional offices throughout the western United States and in New York. The company’s national servicing platform valued at nearly $17 billion represents more than 2,100 loans located in 43 states. Gantry is rated as a Primary Servicer by Standard & Poor’s and is one of a select few non-banking/non-insurance-chartered companies with this designation. For more information, please visit gantryinc.com