Seattle, May 21, 2020 – Gantry, Inc., the largest independent mortgage banking firm in the U.S., has arranged nearly $25 million in financing for a pair of Puget Sound properties. They include a $17 million loan for the Brewery Blocks in Tacoma and a $7.8 million deal for Seaway Business Park Buildings G & H in Everett. Mike Wood, Principal in Gantry’s Seattle office, arranged the financing for both properties through two correspondent life insurance companies.
Located in the heart of Tacoma’s Brewery District, the newly built Brewery Blocks features 49 apartment units over 31,000 square feet of commercial space. Wood worked with the borrower, Horizon Commerce Partners, LLC. (Horizon Partners NW), in securing the 3-year bridge loan with a West Coast-based life insurance company. “The Brewery Blocks borrower was seeking a bridge loan to pay off their existing construction loan that was coming due,” said Wood.
Wood also arranged the 20/30-year loan for the Seaway Business Park in Everett, including five years of interest-only through another correspondent life insurance company. The two industrial buildings at 1330 and 1500 Industry St. were built in 2003 and total 112,475 square feet. Building H consists of 65,885 square feet and Building G consists of 46,590 feet. The assets feature 24-foot clear heights and reinforced concrete construction.
Wood notes, “The Seaway Business Park borrower sought to transition out of a loan that was in the high 4% range into a new deal at a lower interest rate. The refinancing we arranged includes some interest only, which allows the borrower to recoup the prepayment penalty and improve cash flow.”
Gantry arranged financing for 39 separate transactions, totaling more than $210 million in debt across 11 states over the past 30 days. That includes 13 industrial deals totaling $68.2 million; seven multifamily financing deals totaling $52.4 million, two mixed-use loans totaling nearly $28 million, six office loans totaling $23.3 million, two self-storage deals totaling nearly $19 million, seven retail financings totaling $12.6 million, as well as a pair of land deals totaling $6.9 million.
Michael Heagerty, Principal and Chief Financial Officer of Gantry, said “It is encouraging to see the transaction pipeline continue to build behind the backdrop of a global pandemic. We remain cautious but are optimistic that volume will grow as the financing market continues to gain a better grasp of economic conditions as the COVID-19 situation evolves.” He expects to see lenders apply more structure to deals to help mitigate disruptions, such as adding interest reserves, as well as being selective about which markets and asset types they pursue, and closely tracking factors such as rent collections.
Gantry, a privately-held company based in San Francisco, is a full-service commercial mortgage banking firm. Established in 1991 as Newmark Realty Capital, Gantry is staffed by 90 employees in its regional offices. Gantry is the correspondent/servicer on behalf of a roster of the leading life insurance, CMBS and Agency lenders in the nation, placing more than $4 billion per year in loans. Gantry’s national servicing platform exceeds $16 billion, representing over 2,000 loans located in 40 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.