July 26, 2022
‘Seven Apartments’ Refinances with Favorable 10-Year, Fixed-Rate Life Company Loan; Multifamily Properties Remain Preferred Asset Class for Lenders as Market Resets for Second Half 2022; Gantry Places More Than $1.0 Billion of Apartment Property Loans During First Half 2022
Phoenix, Ariz. – Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured $35 million of permanent financing to refinance the Seven Apartments, a class A apartment community located in North Central Phoenix, just south of the 101 Loop at exit 24 on 7th St. The property features 216 apartment units in 17 buildings on 9.34 acres, and includes one-, two-, and three-bedroom floor plans. The property was completed in early 2015 and features numerous resort style amenities including: a state-of-the-art clubhouse, resort style swimming pool and spa with sundecks and poolside Wi-Fi access, community room with fireplace, internet café and coffee bar, dog park, garages, and numerous others.
Gantry’s Tim Storey, Principal with the firm’s Phoenix production office, secured the financing on behalf of the borrower, NexGen Apartments. The ten-year, fixed rate loan featuring interest only payment terms was secured through one of Gantry’s correspondent life company lenders.
According to Gantry’s Tim Storey, “The pace of multifamily lending was above average in the First Half of 2022, although moving into the Second Half we expect to see a tempered yet steady pace as buyers, sellers and borrowers adjust to a new rate climate and macroeconomic disruptions. Deals are still getting done because rates remain reasonable, and for quality assets like Seven Apartments pursuing financing at low leverage, our roster of fixed rate lenders continue to offer permanent and bridge rates attractive to sponsors looking to refinance or acquire new assets. Life companies are particularly focused on quality multifamily assets, and their willingness to lock rate at application provides a compelling motivator for borrowers hedging against rate volatility.”