Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured a $24 million bridge loan for the acquisition of The Terraces, a 117-unit multifamily building including street level retail located at 1300 – 1330 Bush Street in San Francisco’s Lower Nob Hill neighborhood. The mature, rent controlled property originally completed in 1975 offers a mix of studio and one-bedroom apartments and includes 55 dedicated residential parking spaces and an additional 30 retail serving parking spaces. Plans are in place for a full property renovation and improvement program, with the loan including additional earn out funds to cover leasing commissions and tenant improvements for the nearly 17,000 square feet of vacant street fronting retail space.

Gantry’s Jeff Wilcox, Principal, with the firm’s San Francisco production office and Andrew Ferguson, Director, represented the borrower, a joint venture of Arthaus Partners and Belay Investment Group. The variable rate loan was secured through an institutional debt fund from Gantry’s extensive roster of vetted lenders and includes full term interest only with extension options.

According to Gantry’s Jeff Wilcox, “This was a strategic acquisition for an experienced sponsor marking their return to one of the nation’s top multifamily markets. With San Francisco’s high barriers to entry and the timing sensitivities for successfully closing the transaction, certainty of a close became as relevant as maximizing proceeds to cover value add plans. After surveying the full field of qualified lenders against the strategic plans in place to acquire, renovate and refresh the multifamily component and lease up vacant retail space, our team identified a highly responsive institutional debt fund with the necessary experience in multifamily to clearly underwrite investment plans and close efficiently.”