Dealmaker: Gantry Secures $35 Million for Phoenix Class A Apartment Community

Gantry’s Phoenix production office secured $35 million in permanent financing to refinance the Seven Apartments, a class A apartment community in north central Phoenix.

Gantry’s Tim Storey, Principal with the firm’s Phoenix production office, secured the financing on behalf of the borrower, NexGen Apartments. The 10-year, fixed rate loan featuring interest-only payment terms was secured through one of Gantry’s correspondent life company lenders.

Just south of the 101 Loop at exit 24 on 7th St., the property features 216 apartment units in 17 buildings on 9.34 acres, and includes one-, two- and three-bedroom floor plans. The property was completed in early 2015 and features numerous amenities, including a clubhouse, swimming pool and spa with sundecks and poolside Wi-Fi access, community room with fireplace, internet café and coffee bar, dog park and garages.

 “The pace of multifamily lending was above average in the first half of 2022, although moving into the second half we expect to see a tempered yet steady pace as buyers, sellers and borrowers adjust to a new rate climate and macroeconomic disruptions,” Storey said. “Deals are still getting done because rates remain reasonable, and for quality assets like Seven Apartments pursuing financing at low leverage, our roster of fixed rate lenders continue to offer permanent and bridge rates attractive to sponsors looking to refinance or acquire new assets. Life companies are particularly focused on quality multifamily assets, and their willingness to lock rate at application provides a compelling motivator for borrowers hedging against rate volatility.”