Dealmaker: Gantry Secures $19M for Texas Multifamily Acquisition

Gantry, San Francisco, secured $19 million in bridge financing for Ashton Apartment Homes at 681 N. Saginaw Blvd in Saginaw, Texas.

Built in 1984, the 152-unit complex with 14 two-story buildings on 7.6 acres recently underwent a renovation of common area amenities.

Gantry Principal Andy Bratt arranged the loan for the private investor borrower. The lender, a New York alternative investment management company, provided a two-year bridge loan with three one-year extension options.

Bratt noted the funding met the sponsor’s goals of pairing a timely 1031 exchange with a future funding component to provide additional capital necessary to complete a value-add property repositioning.

“Our client, an experienced sponsor in the multifamily sector, decided to deploy proceeds from a 1031 exchange into a new value-add investment,” Bratt said. “This made a short-term bridge loan appealing to complete the purchase of their up leg. This bridge loan funded the acquisition with proceeds available to commence with unit upgrades to fully modernize the property and increase rental income.”

Bratt said Gantry presented loan options from a roster of agency, life company bank, credit union, debt fund and CMBS sources. “In this instance, the bridge loan made sense for a value-add strategy and achieving near-term goals,” he said.