83-Unit Auburn Property 100% Leased; Agency Loan Offers Attractive Rate with Proceeds
Seattle, Wash. (June 27, 2023) – Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured a $12.1 million permanent loan to refinance The Park at Auburn apartments located at 510 M St SE in the city of Auburn, Wash. Originally built in 1981, the two-story, 83-unit complex is 100% occupied and features a mix of well-maintained one-, two -, and three-bedroom units meeting Agency affordability standards for its 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.
According to Gantry’s Mike Wood, “Agency and insurance company loans continue to be a great resource for multifamily sponsors as banks pull back from their commercial lending programs. 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. This put them in a position to refinance the property and repatriate equity from significant proceeds at conservative leverage with an attractive rate and interest only terms for the loan.”
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 100 professionals in regional offices throughout the western United States and in New York with over 45 production teams that originated nearly $5 Billion in the last 12 months. The company’s national servicing platform of approximately $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.