Dealmaker: Gantry Secures $12M to Refinance Affordable Multifamily Property Near Seattle

(Courtesy Gantry)

Gantry, San Francisco, secured a $12.1 million permanent loan to refinance an apartment property in Auburn, Wash., in the Seattle suburbs.

The Park at Auburn apartments are 100% occupied and have one-, two- and three-bedroom units meeting Agency affordability standards for the local community.

Gantry’s Mike Wood, Principal, and Alex Saunders, Associate, with the firm’s Seattle production office, secured the loan on behalf of a long-standing client borrower, a private investor.

The seven-year loan was placed with Fannie Mae at an attractive rate after meeting affordability requirements, featuring interest only for the full term. The lender was also able to size the loan utilizing a 35-year amortization/1.25x debt service coverage ratio, which resulted in additional loan proceeds.

“Agency and insurance company loans continue to be a great resource for multifamily sponsors as banks pull back from their commercial lending programs,” Wood said. “For any property that can meet Agency affordability requirements, options can be even more generous in the current cycle, especially appealing to owners looking to refinance in a higher rate environment. Sponsorship for The Park at Auburn has done a tremendous job operating and maintaining the complex as an affordable property at 100% occupancy, leading to increased value.”