Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured a $14.8 million permanent loan to refinance maturing debt for the Latitude Queen Anne apartments located at 500 3rd Ave W in Seattle’s dynamic Queen Anne neighborhood. The class A, midrise apartment building offers 76-units in a mix of urban one bedroom and traditional one- and two-bedroom floorplans. The highly amenitized property features a rooftop deck and is located within walking distance to Myrtle Edwards Park, the Elliott Bay Trail and local restaurants and merchants. Nearby employers include Amazon, Expedia, Facebook, the Gates Foundation, and Holland America.

Gantry’s Mike Wood, Principal, and Tim Brown, Senior Associate, represented the borrower, a private real estate investor. The 10-year, fixed rate, non-recourse loan was secured from one of Gantry’s correspondent life company lenders and features full-term interest only. Gantry will service the loan for its correspondent. 

According to Gantry’s Mike Wood, “Latitude Queen Anne’s sponsorship needed to retire an pending maturity. They were seeking a cash-neutral refinance that would maximize proceeds and offer a stable rate to capitalize on the asset’s appreciation and steady performance. After reviewing bank, agency, and life company options, one of Gantry’s correspondent life company lenders offered the right mix of terms. A stable rate at maximum proceeds with non-recourse terms for a sub-50% LTV request, qualifying for a full-term interest only payment schedule maximizing cash flows.”

Gantry’s Tim Brown added, “We survey options for every client assignment.  The agencies will always be a top-of-mind consideration for multifamily lending and banks are making a concentrated return to active originations. However, life companies are increasing their allocations to commercial real estate lending and are very competitive on permanent refinancing assignments. Life company programs compete as an alternative to agency options with rate lock at application, streamlined underwriting and attentive servicing. Banks are a recourse provider and often wider on spreads than the life companies. Typically, banks require a deposit relationship as well.  Life company loans appeal to borrowers looking for process ease, certainty of close, and post loan satisfaction.”