Property Type Multi-Family
Financing Type Acquisition
Date October 11, 2022
Garden Style, 168-Unit Complex Located in Paradise Valley Village Near Major Retailers and Amenities; Acquisition Financing Shifts to Agency Lenders and Their High Certainty of Execution
Phoenix, Ariz. – Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured $29.3 million of financing for the acquisition of the 168-unit Cala Paradise Valley apartments. The garden style complex is located on Paradise Village Parkway S., near major retailers including Super Target, Sprouts, Trader Joe’s, Safeway, Costco, and T.J. Maxx. The subject is also within walking distance to Paradise Valley Mall which is undergoing a significant reposition. Originally constructed in 1984, Cala at Paradise Valley has recently undergone a partial renovation of unit interiors. The borrower intends to renovate the balance of the unit interiors while also upgrading the exterior and common area amenities.
Gantry’s Adam Parker, Principal and Chad Metzger, Senior Associate, with the firm’s Phoenix production office secured the financing on behalf of the borrower, a private real estate partnership. The seven-year fixed rate loan was provided by Freddie Mac, with terms featuring a sub 5% interest rate and an upfront interest only period that transitions to a 35-year amortization for the remainder of the loan.
According to Gantry’s Adam Parker, “There is no doubt that rate volatility, inflation, and macroeconomic forces have put new pressures on the multifamily investment marketplace this year, but for experienced sponsorship, solid loan options remain available, particularly where a strong repositioning can add new value. Rate locks are the key to getting transactions done in an ever-changing marketplace. This Sponsor was able to take advantage of Freddie Mac’s index lock program at the signing of the loan application which allowed us to process the loan for 48 days without worrying about the increasing interest rate environment.”