Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured a $22.75 million permanent loan for the University Digs apartment community located at 1902 S Broadway St in Pittsburg, Kansas, directly adjacent to Pittsburg University. The three-story, 190-unit property features a mix of studio, one- and two-bedroom floorplans. Originally built in 1960, University Digs has undergone extensive renovations since its original construction. Current improvements under the property’s sustained active management include modern kitchen finishes and chrome appliances, in-unit washer/dryer, complementary wi-fi, and hardwood flooring. Property amenities include a pool, clubhouse, volleyball court, pickle ball court, and onsite management.

Gantry’s Mark Reichter, Principal, and Alec Frook, Associate, with the firm’s Kansas City production office represented the borrower, a private real estate investor. The five-year, non-recourse, fixed rate loan was secured from one of Gantry’s preferred CMBS lenders from roster of vetted lenders and features full-term interest only.

According to Gantry’s Mark Reichter, “University Digs is a well located, stabilized asset with active management that performs in both a traditional multifamily and student housing model due to its proximity to Pittsburg University, Mercy Hospital, and the restaurant, retail and cultural amenities of downtown Pittsburg. This mix of supporting fundamentals complicated underwriting with some lenders who viewed the asset exclusively as student housing. After reviewing a range of non-recourse agency and life company programs and recourse-driven bank options, a fixed rate CMBS loan offering full-term interest only payments allowed us to maximize proceeds and enhance cash flows in what is still a fixed rate, non-recourse loan structure supporting sponsorship’s plans for a legacy hold.