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6/28/23
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Here’s news of a couple of apartment financing deals, both arranged by Gantry. The deals – an acquisition loan in Tempe, AZ and a refi in Auburn, WA -- total $29.8 mil.
The larger transaction was a $17.7 mil acquisition loan for Solaire at Scottsdale, a 124-unit apartment complex located at 801 E. McKellips Rd in Tempe, an East Valley suburb of Phoenix. The borrower, 29th Street Capital, is planning to upgrade the property’s unit interiors and exterior, which is expected to result in higher rental rates.
The property is uniquely positioned in between Old Town Scottsdale, and Arizona State University in Tempe. The local area is home to high-profile corporate employers such as General Dynamics, HonorHealth Scottsdale Osborne Medical Center, Vitalant, Indeed, First Solar, and Opendoor.
Gantry’s Adam Parker and Chad Metzger arranged the five-year, fixed rate Agency loan through Freddie Mac. It features interest-only payments for three years and then it transitions to a 35-year amortization schedule.
The other transaction was a $12.1 mil permanent loan to refinance The Park at Auburn apartments, located at 510 M St SE in the city of Auburn. Originally built in 1981, the two-story, 83-unit complex is 100% occupied and features a mix of well-maintained one-, two -, and three-bedroom units meeting Agency affordability standards for its local community.
Gantry’s Mike Wood and Alex Saunders arranged the loan on behalf of a private investor. The seven-year loan was placed with Fannie Mae at an attractive rate after meeting affordability requirements, featuring interest only for the full term. The lender was also able to size the loan utilizing a 35-year amortization / 1.25x debt service coverage ratio which resulted in additional loan proceeds.
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