Property Type Multi-Family
Financing Type Acquisition
Date August 17, 2022
Low Leverage, 30-Year Loans Fund 1031 Upleg Acquisitions; Regional Bank Financings Set at Attractive Interest Rates for Legacy Hold and Long-Term Performance Improvements
Lynnwood, Wash. – Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured $13.65 million of long-term financing for the acquisition of two apartment complexes in the city of Lynwood totaling 101-units as upleg investments for a timely 1031 Exchange. The two communities are Nantucket Garden Apartments, offering 40-units featuring 2-bedroom floor plans, and the Encore Apartments, offering 61-units featuring a range of 1-, 2, and 3-bedroom floor plans.
Gantry’s Charlie Kokernak, Director, with the firm’s Portland office secured the financing on behalf of the borrower, a private investor. The 30-year loans at sub-4.5% interest rates are fixed for 7-years with limited pre-payment penalties were provided by a regional bank, and feature 5-year interest only introductory periods.
According to Gantry’s Charlie Kokernak, “Borrowers continue to find attractive financing solutions meeting their property investment goals in what has become a volatile rate environment. Gantry can review our client requirements against a roster of hundreds of potential capital sources, including bank, life company, and agency lenders. In this instance, after a careful analysis of options and investment goals for a timely 1031 exchange requirement, we were able to place financing with low interest rates, significant upfront interest only periods, and flexibly prepayment provisions that will allow our client to operate and improve performance at the properties with manageable terms for their legacy hold plans.”