Dealmaker: Gantry Secures $29M for Phoenix Multifamily Acquisition

Gantry, San Francisco, secured $29.3 million in acquisition financing for Cala Paradise Valley apartments in Phoenix.

Gantry Principal Adam Parker and Senior Associate Chad Metzger with the firm’s Phoenix production office secured financing for a private real estate partnership borrower. Freddie Mac, McLean, Va., provided a seven-year fixed-rate loan with a sub 5% interest rate and an upfront interest-only period that transitions to a 35-year amortization for the remainder of the loan. 

The 168-unit garden-style property at 12211 N. Paradise Village Parkway W is near major retailers including Super Target, Sprouts, Trader Joe’s, Safeway, Costco and T.J. Maxx. Built in 1984, Cala at Paradise Valley recently received a partial renovation of unit interiors. The borrower intends to renovate the rest of the unit interiors while also upgrading the exterior and common area amenities.

“There is no doubt that rate volatility, inflation and macroeconomic forces have put new pressures on the multifamily investment marketplace this year, but for experienced sponsorship, solid loan options remain available, particularly where a strong repositioning can add new value,” Parker said. “Rate locks are the key to getting transactions done in an ever-changing marketplace.” 

Parker noted the sponsor used Freddie Mac’s index lock program, which allowed Gantry to process the loan for 48 days without concern about the increasing interest rate environment.