Gantry hits record $5.15 billion in annual commercial mortgage production in 2021
SAN FRANCISCO–(BUSINESS WIRE)–Gantry, the largest independent commercial mortgage bank in the United States, completed $5.15 billion in commercial mortgage investments in 2021, marking the strongest year in company history for mortgage lenders. annual production totals. Strong post-pandemic performance across most commercial real estate asset classes, an active investment market, compelling incentives to refinance assets at current valuations, and rates that remain at generationally low levels should maintain similar momentum through ‘in 2022.
“2021 was a bumper year for Gantry with total production of $5.15 billion, which tops our previous best production year of nearly $1.5 billion for context,” said Michael Heagerty, director of Gantry. “Commercial real estate markets remain extremely active as investor capital continues to migrate into the sector as the preferred investment option and sponsors take advantage of the strong environment to refinance legacy debt. The Pipeline shows a continuation of activity levels from 2021 into 2022. Even with the anticipated impacts from Federal Reserve actions and the reduction in post-pandemic economic stimulus, we expect commercial mortgage debt markets to remain in a climate generationally low interest rates.
In terms of total capital allocations, commercial mortgage originations in 2021 are defined as follows (ranked in descending order):
Asset class: multi-family, industrial, office, retail, retail and self-storage as the main asset classes.
Loan volumes: Life insurance companies, banks, agencies and credit unions are the main sources of funding.
Loan Values: Life insurance companies, banks, agencies, and credit unions for total loan values.
Notable trends in relevant Gantry verticals include:
Gantry issued a total of 509 unique loans in 2021. Lenders from life insurance companies, banks and agencies were the most active sources for Gantry clients and all loan sources, including CMBS and private debt funds, remain active in early 2022. Life insurance company lenders were particularly active in 2021, offering extremely attractive long-term debt placements for a variety of investment acquisitions and refinancings , with banks being the primary source of financing for new construction and local borrowers, and agencies being the main competitors on multi-family assets. CMBS lenders continue to be an option for higher leverage loan structures, and private debt funds continue to be a viable competitor for bridge and permanent financings.
Key trends to consider in Gantry’s 2021 production totals include:
– Lenders, who remained active through the 12 months of 2021, increased their allocations to commercial real estate last year and are expected to maintain or increase these allocations in 2022.
– Gantry originated loans for a record number of 144 different capital sources in 2021, showing the depth of US capital markets for commercial mortgage debt. Despite the variety of lenders, more than 65% of Gantry’s production was still closed by its corresponding lenders, consistent with the results of the previous year.
– An abundance of sources of capital in commercial mortgage lending bodes well for borrowers in 2022, with competition from lenders for eligible assets creating attractive terms, especially for experienced, proven referrals.
– Although gradual increases can be expected in 2022, rates will continue to remain at historic lows from previous cycles. This bodes well for maturing and near-maturity debt in the market, as well as investors financing new investments.
– Lenders will continue to prioritize multi-family and industrial asset classes in their targeted allocations, with retail and office assets also benefiting from increased completion for financing from the spectrum of capital sources. Hotel assets are still struggling to secure prime rate financing due to ongoing post-COVID performance issues.
– Self-storage assets continued to grow in popularity with institutional lenders due to strong performance and asset class fundamentals, which bodes well for qualified asset class sponsors in the future. looking for prime rate debt.
Gantry continues to see nearly 100% of expected performance from its portfolio of more than $17 billion in serviced commercial mortgages covering more than 2,100 loans in 43 states. These loans represent financing across all asset classes, including hospitality, which remains the most contested asset class post-pandemic. Gantry expects this trend to remain consistent for the foreseeable future as the economy and asset performance continue to stabilize post-COVID.
Gantry has completed a full return to the office across all of its regional offices. The company relocated three of its regional offices in 2021, taking advantage of the opportunity presented by pandemic disruptions and remote working to modernize and upgrade its work environments to accelerate a full return to the office in 2022. new spaces include those serving Los Angeles, Orange County and Portland production teams. Gantry is making similar improvements to its San Francisco headquarters in early 2022, with that office working in temporary space until the improvements are complete, expected by the end of the first quarter of 2022.
About the gate
Gantry, a privately held company headquartered in San Francisco, is a full-service mortgage banking company with an extensive line of correspondent lenders utilizing Gantry’s origination, closing and servicing capabilities. Founded in 1991, Gantry currently has nearly 90 professionals in regional offices across the western United States and in New York City. The company’s National Services Platform loan outstandings of more than $17 billion represent more than 2,100 loans located in 43 states. Gantry is rated as a Primary Servicer by Standard & Poor’s and is one of the few non-banking/unlicensed insurance companies to have this designation. For more information, please visit gantryinc.com.