Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured loans totaling $48.3 million for the acquisition of a four-property multifamily portfolio encompassing 671 units located in Hamburg, N.Y., a suburb of the greater Buffalo MSA. Three loans provided overall financing for the assets, with one loan cross-collateralizing two adjacent properties which will be managed as one community. This is the first time the class B assets have traded since originally being developed in the 1970s, and each community features a stable tenant base and strong performance history.

Gantry’s Tom Grzebinski, Principal, and Zach Wagner, Director, with the firm’s Upstate NY production office represented the borrower, a private real estate investor. The trio of Fannie Mae seven-year loans were secured via Walker & Dunlop and feature fixed rates that include introductory interest only terms.

According to Gantry’s Tom Grzebinski, “This was a complicated financing requiring a deep dive into various loan providers to identify the best option to place permanent, stable debt for the acquisition of a unique four-property portfolio of well maintained, class B assets. The goal was to align three loans, with one loan cross collateralizing two adjacent properties, to keep each community independent moving forward. This strategy successfully compartmentalized each asset for refinancing flexibility or a future sale, still with a legacy hold in mind. After a careful review of relevant programs including debt fund and insurance lender options, the Agency financing provided through Walker & Dunlop offered the best terms and structure for the successful acquisition, with an upfront interest only period enhancing early term cash flows at these stabilized properties.”

Gantry’s Zach Wagner added, “One of the key elements to successfully close this complicated acquisition was working with our client to secure additional purchase equity through a strategic refinancing. Gantry successfully merged two existing portfolio assets into one new loan to deliver cash-out proceeds supporting the purchase of the four Hamburg properties. This optimized cash on hand to align necessary debt service for a permanent loan on the newly acquired assets, a testament to Gantry’s focus on maximizing a client’s available resources and investment reach from a strategic portfolio-based growth model.”