Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured a total of $50.75 million in two permanent loans to refinance post-construction bridge debt for a pair of recently repositioned and comprehensively renovated apartment communities in Kansas City. Now stabilized, both assets offer modern unit finishes and upgraded common areas upgrades with studio, one, two and three-bedroom floorplans. The first community is the 222-unit Palisades Apartments at 4018 Harvard Lane in Kansas City’s Eastside submarket. The second community is the 133-unit Mayfair Apartments at 12942 Wornall Rd in Kansas City’s Woodbridge residential neighborhood.

Gantry’s Mark Reichter, Principal, and Alec Frook, Associate, represented the borrower, a private real estate investor. The five-year, fixed rate, non-recourse loans were secured through one of Gantry’s preferred CMBS affiliates with full-term interest only underwritten to interest only DSCR. Gantry will service the loans for the lender.

According to Gantry’s Mark Reichter, “In today’s market, debt liquidity for quality multifamily is abundant and accessible. With this in mind, maximizing proceeds in a non-recourse structure at the highest possible LTV can be an appealing option for sponsors. Both Palisades and Mayfair are now stabilized and cash flowing after significant renovations and repositioning. While rate volatility and a heavier underwriting lift can be challenges up until the day of close, CMBS offers a non-recourse execution at the desired maximum proceeds and is competing aggressively through five-year terms underwritten to full-term interest only debt service, an option not available from agency, bank and insurance company lenders.”