Company overcomes bank pullback with expanded lending partnerships
Commercial mortgage banking firm Gantry has reported a steady improvement in commercial mortgage production during the first quarter of 2024.
Despite the challenges posed by elevated rates, the firm said it has successfully secured viable loans across various property types by tapping into its extensive network of correspondent lenders and alternative capital sources beyond traditional banks.
"Our production teams are successfully sourcing debt solutions for our clients in a tough cycle. That's not saying we aren't working harder to optimize the outcome, but we are still securing viable loans for a wide range of borrowers," Braden Turnbull, principal at Gantry, said in a media release.
With banks pulling back as primary debt sources for many deals, Turnbull noted that Gantry's role has become more critical in identifying relevant financing options that reflect the demands of the current commercial real estate cycle.
"We have to expect that rates will remain in this new higher range for the foreseeable future, but regardless, for most properties, we can still identify a workable debt program and structure," Turnbull said.
Among Gantry's representative transactions in Q1 2024 were a $91 million construction-to-permanent loan for an industrial project, a $128 million construction loan for a multifamily development, and various permanent loans for office, medical office, retail, and self-storage properties.
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Paddy Ryan, another principal at Gantry, emphasized the firm's extensive relationships with hundreds of commercial real estate debt sources as a key advantage in navigating the current challenging cycle.
"As banks have stepped back from the market to shore up their operations and process shifting regulatory policy, Gantry's correspondent life company lenders are a reliable alternative for permanent debt and a wide range of construction-to-permanent, bridge, and participating loans, often with some new flexibility on prepayment," Ryan said.
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