Property Type Multi-Family
Financing Type Refinance
Date May 4, 2023
Albuquerque’s Union 505 Complex Refinances with 7-Year Agency Loan; Freddie Mac, Fannie Mae, and Life Companies Remain Stable Lenders as Banks Pull Back from New Origination
Albuquerque, N.M. – Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured a $45.5 million permanent loan to refinance the Union 505 Apartments located at 801 Locust Place NE in Albuquerque, N.M. The 572-unit community offers studio, loft, and one and two-bedroom renovated units in a garden style format. The complex also features a newly remodeled clubhouse with FREE Wi-Fi, state of the art fitness facility, outdoor sport court, landscaped open space and resort-style pool area.
Gantry’s Adam Parker, Principal and Chad Metzger, Senior Associate, with the firm’s Phoenix production office secured the loan on behalf of the repeat Gantry borrower. The 7-year, fixed rate loan was placed with Freddie Mac, and features full-term interest only payments. Mr. Parker and Mr. Metzger were able to maximize loan proceeds for their client because Fannie Mae agreed to underwrite the debt-service-coverage ratio using a 35-year amortization instead of the normal 30-year amortization. The borrower wanted to maximize loan proceeds as they were using the cash-out proceeds to purchase another asset.
According to Gantry’s Adam Parker, “While we have seen some turbulence in the multifamily financing sector early in 2023, Agency lenders remain active and provide necessary liquidity to tightening capital marketplace. Fannie Mae and Freddie Mac are offering competitive interest rates and aggressive terms for properties that qualify for their affordability tests.”