Gantry reaches $ 3.62 billion in commercial mortgage production through third quarter 2021
SAN FRANCISCO – (COMMERCIAL THREAD) – Gantry, the largest independent commercial mortgage bank in the United States, made $ 3.62 billion in new commercial mortgage placements in the first three quarters of 2021, including $ 1.5 billion dollars in the third quarter of 2021. Lenders are expected to remain active and competitive in the fourth quarter, with expectations that Gantry will hit $ 5 billion in production by the end of the year. Production totals reflect a very favorable lending environment for borrowers and a strong appetite from Gantry lenders to place favorable debt on qualified commercial real estate assets.
“While there is potential for a rate hike by 2022, we have yet to see a significant change materialize in the lending environment, so we continue to remind borrowers that we are sticking with what can only be characterized as a generationally favorable funding climate, âsaid Michael Heagerty, CFO and Managing Director of Gantry. âThis climate provides eligible commercial real estate investors with attractive options to refinance or acquire properties. As the investment market remains overheated by the abundance of capital competing for assets, compressing cap rates and raising valuations, the right tailor-made debt solution has become more critical than ever. CMBS life insurance companies and lenders remain particularly active in the low to moderate leverage market, offering historically low rates and favorable terms including generous prepayment options and interest only payments .
In terms of total capital allocations, the 2021 arrangements are defined as follows (listed in descending order):
Asset class: Multifamily, industrial, office, retail, mixed use and self-storage.
Loan volumes: life insurance companies, banks, agencies, CMBS and credit unions as main sources of funding.
Loan values: life insurance companies, banks, agencies, CMBS and credit unions for total loan values.
Notable trends in relevant Gantry verticals include:
Gantry generated a total of 118 unique loans in the third quarter and 359 year-to-date. Lenders from life insurance companies, CMBSs and GSAs remain extremely active and are often the preferred source of long-term debt. Banks and credit unions remain an attractive source for medium-term lending structures and continue to be a primary source of construction finance. In addition, life insurance companies have entered the bridge loan space, competing with debt funds and alternative lenders, for properties in transition or seeking stabilization.
Key trends to consider from Gantry’s production totals for the first three quarters of 2021 include:
As cap rates compress and asset values âârise, generically low interest rates and favorable terms for borrowers, including term interest only, will provide significant improvements in cash flow. borrowers.
Life insurance lenders continue to reward low leverage sponsors by financing assets when the LTV / LTC is in the 1950s, providing very favorable terms for both new acquisitions and refinancings.
CMBS lenders are an active and increasingly attractive source of lending for traditional portfolio borrowers looking to finance at higher leverage points.
Banks and credit unions remain competitive in terms of rates and products, as well as construction finance.
Lenders, some of whom are looking to make up for lost time in 2020, remain active in the market with aggressive pricing to win new business and lenders have already indicated that the trend will continue through the end of the year and into 2022.
Gantry, a long-time Standard & Poor’s rated primary services provider, continues to deliver nearly 100% of expected performance on its $ 17 billion plus commercial mortgage serviced portfolio covering more than 2,000 loans in 43 states. These loans represent financing in all asset classes, including the hotel industry, which remains the most contested asset class after the pandemic. As lenders continue to shy away from hospitality and many types of office buildings, Gantry continues to see the performance of its management portfolio loans in these asset classes. Gantry expects to see a continued trend in asset performance for the foreseeable future as the economy and asset performance continue to stabilize after COVID.
Gantry recently moved into his new Portland creative office, where he did a full design-build. The new office houses its production, service and loan closing teams in Portland’s âSlabtownâ neighborhood. Located between the Pearl and Nob Hill neighborhoods, Slabtown is a unique blend of residential and industrial buildings with pedestrian streets, numerous boutiques, cafes, restaurants and art galleries. Decision to identify, design and open this office for the Oregon production team follows Gantry’s acquisition of the commercial mortgage banking unit of Norris, Beggs & Simpson in late of 2019. The opening of the office represents a commitment by Gantry to resume his duties. operations at its operating sites by 2022, in line with the guidelines of local jurisdictions in the community of each production office.
About the gantry
Gantry, a privately held company headquartered in San Francisco, is a full-service mortgage banking company with a wide range of correspondent lenders utilizing Gantry’s production, closing and service capabilities. Founded in 1991, Gantry currently has nearly 90 professionals in regional offices in the western United States and New York. The company’s national service platform outstanding loan balance of over $ 17 billion represents more than 2,100 loans located in 43 states. Gantry is classified as a Primary Servicer by Standard & Poor’s and is one of the few non-bank / non-insurance chartered companies with this designation. For more information, please visit gantryinc.com.