Property Type Multi-Family
Financing Type Refinance
Date May 17, 2023
Fixed Rate Agency Loan Helps Lunaire Apartments in Goodyear Retire Floating Rate Debt; Agency Lenders Remain Stable Source of Financing as Banks Curtail New Originations
Phoenix, Ariz. – Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured a $41.6 million loan to refinance the Lunaire Apartments, located at 949 S. Goodyear Blvd in Goodyear, Ariz., a West Valley suburb of the Phoenix MSA. The 240-unit offers 1-, 2-, and 3-bedroom units in a variety of configurations. Amenities include modern unit interior finishes, recent landscape and exterior renovations, resort-style pool and spa, 24-hour fitness center, covered parking and EV charging stations.
Gantry’s Adam Parker, Principal, Chad Metzger, Senior Associate, with the firm’s Phoenix production office secured the loan on behalf of the borrower, a private real estate investment company. The 5-year, fixed rate loan was placed with Freddie Mac, featuring an upfront interest only period and a sub-5% rate.
According to Gantry’s Adam Parker, the owner of Lunaire Apartments, 29th Street Capital, had a floating rate loan in-place, and they were motivated to refinance into a fixed rate loan to avoid the significant on-going interest rate CAP escrow which was impacting their available cash flow. 29th Street Capital had made property improvements and subsequently increased the property’s NOI significantly since purchasing the asset in 2021. While banks have slowed their CRE lending appetite, Agency lenders and Life Co. lenders remain active and provide necessary liquidity to the multifamily financing marketplace.