Solaire at Scottsdale
June 20, 2023
Agency Loan Structured for the Acquisition of Solaire at Scottsdale
Tempe, Ariz. – Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured $17.7 Million of financing for the acquisition of Solaire at Scottsdale, a 124-unit apartment complex located at 801 E. McKellips Road in Tempe, an East Valley suburb of Phoenix. 29th Street Capital, a repeat Gantry borrower, is planning to upgrade the property’s unit interiors and exterior which is expected to result in higher rental rates. The property is uniquely positioned in between Old Town Scottsdale, and Arizona State University in Tempe. The local area is home to high-profile corporate employers such as General Dynamics, HonorHealth Scottsdale Osborne Medical Center, Vitalant, Indeed, First Solar, and Opendoor.
Gantry’s Adam Parker, Principal, and Chad Metzger, Senior Associate, with the firm’s Phoenix production office arranged the loan. The five-year, fixed rate Agency loan was provided by Freddie Mac, and features interest only payments for three years and then transitioning to a 35-year amortization schedule.
According to Gantry’s Adam Parker, “Fannie Mae and Freddie Mac have remained active multifamily lenders despite an environment that is causing other lenders to pull back. Our client, 29th Street Capital, sought a fixed-rate permanent loan with maximum leverage and interest only payments. By utilizing Freddie Mac program exceptions like 35-year amortization schedule and rate buy-downs, we were able to maximize loan proceeds and lock in an attractive interest rate at loan application. This is Gantry’s second loan on behalf of 29th Street in 2023, following a $41.6 million refinance of Lunaire Apartments in Goodyear, AZ earlier this year.