Adaptive Reuse of Downtown’s Historic James S. Black Building Results in New Class A Multifamily Community Featuring 50 Apartment Units and Street Front Retail; Stabilized Multifamily Remains Preferred Asset Class with Life Company Lenders for Long-Term Fixed Rate Financing
Spokane, Wash. (May 25, 2022) – Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured $4.8 million of permanent financing for The Marjorie, a recently completed multifamily adaptive reuse project in downtown Spokane. The project offers 50 apartment units above 5,000 square feet of street front retail space which features the Wave Restaurant and Sushi Bar. Originally built in 1907 as the Columbia Building, the office building was renamed the James S. Black Building in the early 1970s. The Marjorie now honors the legacy of Marjorie Black Peterson, who co-founded James S. Black & Co. with her husband in 1958.
Gantry Principal Demetri Koston, of the firm’s Spokane production office secured the loan on behalf of the borrower, Black Enterprises LP. The 25-year, fixed rate loan was funded by one of Gantry’s correspondent life company lenders. Notably, the fully assumable, non-recourse loan was placed with no lender fee or reserve required. Gantry will also service the loan.
According to Gantry’s Demetri Koston, “The Black family has played a defining role in the development of Spokane as the modern city we know today, and The Marjorie promises to carry that legacy forward in good standing. The property, fully leased since its opening, is a definitive case study for what Gantry’s extensive roster of life company lenders are looking for when placing a long-term loan. Developed by an experienced sponsor with a legacy hold vision for the property, stabilized and in a location demonstrating strong long-term fundamentals, and utilizing the street fronting space to provide a diversified revenue stream from a retail tenant that also acts as a resident amenity. For any projects offering the above or similar elements, life company lenders are underwriting long term loans at what remain generationally-low fixed rate terms.”
Gantry, a privately held company headquartered in San Francisco, is a full-service mortgage banking firm with an extensive lineup of correspondent lenders utilizing Gantry’s production, closing and servicing capabilities. Established in 1991, Gantry is currently staffed by nearly 90 professionals in regional offices throughout the western United States and in New York with over 40 production teams that originated over $5.1 Billion in 2021. The company’s national servicing platform of nearly $18 billion represents more than 2,100 loans located in 43 states. Gantry is rated as a Primary Servicer by Standard & Poor’s and is one of a select few non-banking/non-insurance-chartered companies with this designation.