"Production is at a low point as the market resets on a number of fronts," executive says
Commercial mortgage banking firm Gantry saw its production fall in the first half of 2023 as disruptions in the CRE market continued to rock investors and lenders.
The private company said it experienced an annual decline in commercial mortgage production but did not disclose the exact figures. Gantry cited higher mortgage rates, tighter lending conditions, and the banking fallout as reasons behind the decrease.
“Typically, we would report overall production volume at this time of year, but, as we are in the anomaly of a major cycle shift, let it suffice to say that new commercial mortgage production is at a low point as the market resets on a number of fronts,” George Mitsanas, principal with Gantry, said in a press release. “However, this does not indicate wholesale distress across the commercial real estate markets, as liquidity exists, and the economy remains strong with most asset classes and properties performing as underwritten.
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“This is supported by the 100% performance of Gantry’s $18 billion loan servicing portfolio. Gantry is well prepared as a private company owned directly by its producers to weather the current cycle, and we will continue to serve clients and invest in our future via workforce retention and recruitment, including 2023 summer internships.”
According to Andy Bratt, principal at Gantry, the firm continued to place loans across all the major asset classes, including office, which remains the most challenged of the property types.
“Gantry continues to execute on our sponsor’s financing needs and business plans, even while faced with headwinds of meeting debt service requirements with higher interest rates and maximizing proceeds with creative structures. This is done through an extensive marketing process on each loan assignment and access to best-in-class capital sources,” Bratt said. “We may be working harder on each assignment, but we are financing with certainty of close at attractive rates for a wide range of assets and qualifying sponsors.”
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