Gantry Reports Consistent Commercial Mortgage Production Throughout Q1 2025
- Gantry
- Apr 22
- 5 min read
Firm’s National Loan Servicing Portfolio Grows to Nearly $24 Billion in Total Consideration; Insurance Company, Agency, Bank, Credit Union, and CMBS Lenders All Active in Early 2025
San Francisco, Calif. (April 22, 2025) – Gantry, the largest independent commercial mortgage banking firm in the U.S., is reporting consistent commercial mortgage production throughout Q1 2025, with the firm’s national portfolio of serviced loans increasing to nearly $24 billion. As the market absorbs significant realignment moving into Q2 2025, Gantry’s diverse roster of correspondent insurance companies and recently closed sources of commercial mortgage debt and equity remain active. Access to liquidity is consistent in an evolving marketplace as lenders continue to compete for their 2025 commercial mortgage allocations.
“We saw consistent rate improvement after an early spike in January, supporting a steady pace for new refinance and acquisition originations across the quarter,” said Andrew Mekjavich, Principal with Gantry. “Since tariff announcements in early April, new uncertainties and rate volatility have emerged, and we continue to monitor the evolving climate closely as markets adapt to new realities. While rates currently remain in a range consistent with fulfilling most borrower’s financing needs, we are encouraging borrowers to engage the process at the earliest opportunity. For known maturities especially, viable sources and debt strategies should be identified and well underway before summer ends.”
Representative transactions from Gantry’s Q1 2025 production include:
Medical Office: $30 Million Permanent Refinance / Davis Square Center - Boston
Production and Trends
Gantry’s production teams engaged in steady and consistent commercial mortgage production on behalf of clients across Q1 2025, with rates improving considerably throughout the quarter following early volatility in January. While volatility has returned early in Q2, liquidity remains accessible as the market steadies and adjusts to new conditions. The firm’s roster of correspondent insurance company, agency, bank, credit union, and CMBS lenders remain active and competitive in pursuit of their commercial mortgage lending allocations. Fundamentals continue to show healthy performance across the major asset classes, supporting lender confidence in industrial, multifamily, retail, and self storage assets. Strong underwriting in the office sector has resulted in a growing number of successful refinances for performing office properties and new loans for trades as assets reset to current market values. Hospitality also continues to show marked improvement.
“Our production teams continue to source optimized financing structures for our clients in what remains a volatile market climate on a number of fronts,” continued Andrew Mekjavich, Principal with Gantry. “Our goal is to mitigate any market uncertainty by locking in financing at the earliest opportunity and at the best available rate, aligning the right mix of debt and equity to best achieve client goals after a competitive survey of options. We continue to have great success pairing many borrowers to our insurance correspondents, who are one of the most reliable and consistent sources of permanent debt in the market today. We expect these lenders to remain competitive throughout 2025 in pursuit of their desired allocations.”
The introduction of new tariff policies has roiled global markets and initiated a dramatic realignment of the world economy. Uncertainty surrounds the early days.
New tariffs are expected to have an outsized impact in CRE on new development, with anticipated impacts to construction materials expected to increase project costs.
Where the rate climate heads in 2025 remains unclear, with hopes of substantial improvement weighed down by inflationary concerns and economic volatility. Early engagement in the financing process will be key to rate optimization in 2025.
Treasury yields experienced an early spike after the tariff announcements but have since retreated to a level supporting most borrower’s financing requirements.
Hopes for the Federal Reserve to return to rate cuts this year have transitioned to expectations that inflationary cautions will slow the pace of future cuts.
The MBA forecasted 10-year treasury yields from 4% to 4.9% in 2025. They are currently at sub 4.5% levels, with corporate bond spreads impacting final all-in rates.
Gantry’s extensive roster of correspondent insurance company lenders remain active in pursuit of expanded allocations to commercial real estate, offering prepayment flexibility, interest only, and other competitive terms to offset rate strain.
While banks are active again in new origination where recourse and deposits are available, they are slowly returning to traditional terms as an outlier on select deals.
Office assets are consistently finding loan options with a growing pool of Gantry’s lenders as values reset, leasing improves, and assets begin to trade again.
Bridge to bridge remains a refinance strategy available to assets still in transition or with an actionable plan in place to improve performance.
CMBS is becoming a relevant consideration for borrowers looking to maximize proceeds but remains subject to underwriting uncertainties in a volatile rate climate.
Agency and insurance company lenders remain competitive options for multifamily borrowers, with programs tailored to maximize proceeds in the current rate climate.
Debt funds, family offices, and other private capital sources remain active in pursuit of yield and are becoming increasingly focused on targeting distress where it exists.
Gantry’s loan servicing portfolio is approaching $24 billion and continues to perform in the face of volatile market conditions across the full spectrum of asset classes.
Culture
Gantry continues to grow its team of commercial mortgage talent and has expanded its dedicated Pacific Northwest production team with the addition of Doug Thatcher as Senior Director with the firm’s Seattle office. Mr. Thatcher is a veteran presence in the region’s commercial real estate finance markets, with more than $1.0 billion of successful transactions on behalf of clients spanning a more than three-decade career.
Servicing
Gantry maintains its long-running distinction as a Primary Servicer rated by Standard & Poor’s. The firm’s national loan servicing portfolio is currently approaching $24 billion in total consideration. Portfolio growth is from both corporate acquisitions in 2024 and organic production through Q1 2025. The breadth, depth, and capability of the firm’s servicing division provides the foundation for Gantry’s strong and often exclusive correspondent relationships with many of the nation’s leading life insurance companies and conduit lenders. Gantry’s portfolio has consistently performed during the volatility and uncertainty of a tough market cycle, with expectations for continued performance throughout 2025.