StorEz Self Storage
December 7, 2023
Transactions Originated with Firm’s Life Company Correspondents Include Permanent Loans for Multifamily Property in Bakersfield, Calif., and a New Self Storage Facility in Scottsdale, Ariz
Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured $28.7 million of financing in two unique transactions for separately owned properties, one a multifamily asset in California and the second a self-storage property in Arizona. Each loan provided a financing solution for properties at different points in their lifecycle, and both permanent loans featured fixed rate financing with creative structures.
Gantry’s Andy Bratt, Principal, and Sean Kuang, Associate, with the firm’s Irvine production office secured the following loans on behalf of their clients, including:
StorEz Self Storage/$18.3 Million – The recently completed, new construction facility is located at 3030 North 73rd Street in Scottsdale, Ariz., and offers 71,000 rentable square feet in 797 units. The 5-year permanent loan was underwritten on the asset’s five-year proforma as it moves through stabilization. The financing was sourced from one of Gantry’s insurance companies and features a fixed rate with an initial interest only period followed by 25-year amortization.
Golden Valley Luxury Apartments/$10.4 Million– The transaction represents the acquisition of 80-units within a 332-unit luxury multifamily community, controlled by an HOA, located at 600 Hosking Avenue in Bakersfield, Calif. The 30-year permanent loan features a fixed rate and 30-year amortization. Many traditional lenders were unable to get comfortable with the acquisition due to Sponsorship acquiring a portion of the units and representing under 51% control of the HOA. The balance sheet Life Company was able to get comfortable with Sponsorship and property to overcome the hurdle around the Association.
According to Gantry’s Andy Bratt, “Gantry’s roster of life company correspondents offers access to one of the most stable debt capital sources in today’s volatile finance climate. Gantry’s time-tested relationships with these correspondents allows us to approach them with diverse financing needs that require creative structures that meet the criteria for their investment committee as they try to fill their allocations. Both transactions required creativity, and in both instances, we were able to meet sponsor investment goals with meaningful financing solutions at attractive rates and terms.”