Dealmaker: Gantry Secures $77M for Multifamily, Industrial Assets

February 1, 2022 |By msorhan-msorhan@mba.org

Gantry, San Francisco, secured $77.6 million in transactions for multifamily and industrial assets in Washington, Montana and California.

The first transaction provided $26.2 million to refinance the Beaumont-Biltmore Apartments, a 270-unit multifamily property in Spokane, Wash. Built in 1994, the fully stabilized garden-style apartment community in the South Hill neighborhood offers one-, two- and three-bedroom units.

Landings on Two Mile photo courtesy of Gantry

The second transaction provided $16.4 million in permanent financing for the recently completed and stabilized Landings on Two Mile, a 108-unit apartment project in Kalispell, Mont., a town nicknamed the gateway to Glacier National Park.

Gantry Principal Demetri Koston secured the loans for the private investment entity borrowers. Fannie Mae, Washington, D.C., supplied both non-recourse loans. The Spokane financing included interest-only terms and a sub-3 percent floating rate for the ten-year loan. The Kalispell financing will remain fixed for its full 15-year term.

“Multifamily assets have consistently performed in the post-COVID era and have remained a preferred asset class for lenders of all types as a result,” Koston said. “Agency lenders have remained competitive in an environment where life companies, banks and credit unions continue to offer viable options for these asset types.”

Koston noted both borrowers recapitalized at current market valuation rather than sell the assets to secure significant cash out at closing and position their properties for consistent cash flow. “Both transactions point to a relevant consideration in the current cycle,” he said. “For any property investor currently reviewing maturing or near maturing debt, a competitive market continues to feature generationally low rates and options from a variety of sources.”

In San Jose, Calif., Gantry secured a $35 million loan for Valley Creative Center, a 167,000-square-foot, six-building R&D complex. Redwood City-based Dollinger Properties acquired the asset in August 2021.

Gantry Director Tony Kaufmann place the 10-year permanent loan with one of Gantry’s correspondent institutional life insurance company lenders. Kaufmann said Valley Creative Center is in Silicon Valley’s Golden Triangle submarket and noted demand for warehouse and lab space has increased throughout Silicon Valley.