Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured a $14.6 million construction-to-permanent loan for the Milano Issaquah Apartments planned for delivery at 2300 Newport Way NW in Issaquah, a fast-growing suburban community 17 miles east of Seattle. Strategically located within the Central Issaquah Plan Area near major local employers like Costco’s global headquarters and with ready access to I-90, the project is slated for 65 class A units in a midrise structure. The property will include studio, one-, and two-bedroom units in four stories over two stories of underground parking. Four of the units are slated as affordable housing for qualifying tenants. Amenities will include modern finishes, an indoor recreation room, outdoor event terrace, and public nature trail access directly from the property.

Gantry’s Mike Wood, Principal, and Tim Brown, Senior Associate, represented the borrower, a private real estate investor. The ten-year, fixed rate loan features both recourse and non-recourse periods (pre/post completion) and was secured from a regional credit union, including partial term interest only payments transitioning to 30-year amortization.

According to Gantry’s Mike Wood, “Where projected rents support and demonstrable demand exists, we continue to see highly accessible debt options for construction financing in a competitive lender marketplace. With approvals complete, this fully entitled project from an experienced sponsor was ready to commence with construction. After reviewing finance requirements against both a range of traditional life company, bank, and credit union construction loan programs and construction-to-permanent options, a construction-to-permanent option from one of Gantry’s vetted Credit Union sources best met investment goals to fund the project at an optimized cost of capital through to stabilization and beyond.”