Gantry Secures Financing for Two Multifamily Assets
The firm has secured $42.7 million in new agency financing for communities in Washington and Montana, on behalf of two private investment entities.
SPOKANE, WA – Independent commercial mortgage banking firm, Gantry has secured $42.7 million of new agency financing in two separate transactions for two multifamily assets in Spokane, WA and Kalispell, MT.
Principal of Gantry’s Spokane production office, Demetri Koston secured the loans on behalf of the borrowers, both private investment entities. The non-recourse loans were placed with Fannie Mae.
For the first transaction, Gantry secured $26.2 million to refinance the 270-unit multifamily property, Beaumont-Biltmore Apartments, in the South Hill neighborhood of Spokane, WA. The fully-stabilized, garden-style community was built in 1994 and features a mix of one-, two- and three-bedroom floorplans. The 10-year loan for this asset features interest-only terms and a sub-3% floating rate at closing.
For the second transaction, Gantry secured $16.4 million in permanent financing for the 108-unit apartment project, Landings on Two Mile, in Kalispell, MT. The recently completed, stabilized community is situated near Glacier National Park. The 15-year term financing for this asset features a fixed-rate for the life of the loan.
“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,” says Koston. “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.”
Koston adds, “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.”