Over the course of capital market cycles life insurance companies may decide to sell commercial mortgages from their portfolios. In December 2002 Peter G. Welsh, Managing Principal in our Los Angeles office arranged a conventional permanent loan of $34,000,000 from a life insurance company on the Eagle Glen Apartments, a 320 unit condominium-quality multi-family complex in Murietta, California. Several months ago the original lender sold the loan (as part of a pool of loans) to an institutional lender, who, in turn, planned to securitize the outstanding balance of the loan. Acting quickly on behalf of both the borrower and the institutional lender, Peter along with his partner in Gantry George Mitsanas, negotiated a restructuring of the loan to benefit both parties. In this restructure the loan amount was increased to $35,000,000, the interest rate was reduced to a competitive market rate and debt service was further reduced by modifying amortization to an interest-only basis, insurance provisions were relaxed, and the term was extended to 10 years. In exchange for these accommodations the lender received a discounted prepayment premium, a modified entity structure compatible with today’s CMBS guidelines and a full 10 year loan term. Over the past few years George and Peter have worked with borrowers to restructure over $300MM in loans to the benefit of all parties involved. Gantry looks forward to working with you on all of your commercial property financing needs regardless of how straight forward or complex. With offices in Los Angeles, San Francisco, Sacramento, Seattle, Irvine, Las Vegas, and Phoenix, Gantry is a privately held full-service commercial mortgage banking firm that provides financing for income-producing properties. Gantry originates and services loans for its correspondent lenders and other insurance companies, pension funds, Wall Street conduits and commercial banks which are considered among the strongest and most active institutions in the real estate capital markets. For more information on this transaction please contact Peter Welsh at (310) 846-5298, or Michael Heagerty at (415) 956-9854.