Dealmaker: Gantry Secures $30M For Multifamily, Retail Assets
(Skyview Lofts, Kalispell, Mont. Photo courtesy of Gantry)
Gantry, San Francisco, secured $29.8 million in two transactions in Montana and California.
In Montana, Gantry secured a $8.2 million permanent loan to retire construction financing from the development of Skyview Lofts, a 48-unit multifamily community located at 2105 3rd Ave E in Kalispell.
Gantry Principal Demetri Koston from the firm’s Spokane production office secured the loan on behalf of the borrower, a private real estate company. Fannie Mae, Washington, D.C., funded the 10-year loan with 30-year amortization and full-term interest only payments.
“All real estate is local, and while this is a superior class A development, it came out of construction at a winter low point for leasing in its local submarket,” Koston noted. “This delayed initial stabilization, which in turn subjected the property to the current rate volatility impacting commercial real estate financing across all asset classes. He said Gantry positioned the development to secure a permanent agency loan to maximize proceeds and position the property for a successful legacy hold.
In Los Angeles, Gantry arranged $21.6 million in construction-to-permanent financing for the development of a 33,700-square-foot grocery-anchored retail project in Studio City. The property is located at 11265-11321 Ventura Blvd.
Gantry Principals Braden Turnbull and George Mitsanas and Associate Austin Ridge with the firm’s Los Angeles office represented the borrower, a private real estate entity. The five-year construction-to-permanent loan was provided by one of Gantry’s correspondent lenders, offering a fixed rate and interest only terms over the life of the loan.
“Behind the scenes of this transaction, Gantry has worked closely over two years with one of our long-standing correspondents to develop a construction-to-permanent program that met their investment committee approval,” Turnbull said. “This is the first loan of that successful effort. Subsequently, our team sourced a range of quotes before landing on this life company execution. Liquidity is there for construction when the right sponsor tells the right story about their vision for a relevant build supported by strong fundamentals and a clear development plan.”
Mitsanas noted the firm currently has several hundred million dollars of construction-to-permanent loans either in the process of closing or now under construction.
