June 27, 2023
Loan Funds 46 Luxury, For-Lease Townhomes in Tucson; Institutional Debt Fund Relies on Sponsorship Experience and Strong Market Fundamentals to Underwrite in Turbulent Market
Tucson, Ariz. – Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured a $11.9 million construction loan for development of a luxury, for-lease townhome community located at 1855 W. River Road in Tucson, Ariz. The master-planned project features two- and three-bedroom, two-story units, each with its own attached, private two-car garage. Community amenities will include a swimming pool with cabanas, barbecue areas, and fitness center. This is the sponsor’s second such development in Tucson, adding 46 new townhome residences to the first similar project of 29 residences located at 1100 River Road.
Gantry’s Tim Storey, Principal, Chad Metzger, Senior Associate, and Casey Kupferberg, Associate, with the firm’s Phoenix production office represented the borrower, an Arizona-based developer. The loan was provided by an institutional debt fund specializing in new construction lending, including a fixed rate below 10% and interest only terms for the three-year loan.
According to Gantry’s Tim Storey, “Gantry has access to a range of lenders still funding new development in the current cycle. However, rate volatility and fluctuating construction costs delayed the final underwriting for this project to ensure accurately funding the build through to completion. Sponsorship experience with a solid equity commitment and a strong project story helped us execute a successful capital strategy. Even though banks are stepping back from construction lending in the current cycle, Gantry still works with hundreds of other capital sources to tailor optimized financing programs for our clients in spite of real market challenges.”