Cash-Out Financing Replaces Maturing Permanent Loan; Gantry’s Life Company Correspondents Positioned in Current Cycle to Offer Financing with Attractive Fixed Rates
Tucson, Ariz. (January 12, 2024) – Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured a $10 million permanent loan to refinance the Sandstone Apartments located at 405 E. Prince Road in Tucson, Ariz. The 329-unit garden-style complex offers 1- and 2-bedroom floorplans just minutes away from Downtown Tucson, the University of Arizona, Pima Community College, many restaurants, and the Tucson Mall.
Gantry’s Adam Parker, Principal, Chad Metzger, Senior Associate, and Casey Kupferberg, Associate, with the firm’s Phoenix production office secured the new financing on behalf of the borrower, a family office sponsor. The five-year life company loan features a fixed rate, locked at application, and 30-year amortization. The loan provided the borrower with cash-out funds as they view the next 12 – 18 months as a good time to expand their multifamily portfolio.
According to Gantry’s Adam Parker, “Unlike other asset classes, multifamily sponsors have significant options in today’s volatile climate, including agency, bank, CMBS, and life company loan programs. Gantry reviews each of our client assignments across hundreds of funding sources to identify the best option for their investment goals. With the Sandstone Apartments refinance, we reviewed agency, bank, and life company options for a cash-out refinance of this well-maintained, garden-style, legacy-hold apartment community with an experienced sponsor. Both ten- and five-year term options were considered. We ultimately landed on a life company execution offering a five-year, fixed rate loan nearly 30 basis points lower than other comparable options, providing our client with the lowest interest rate spread locked at Gantry in 2023!"