Gantry, the largest independent commercial mortgage banking firm in the U.S., has arranged a $16.2 million permanent loan to retire acquisition financing for the Highlander Apartments located at 11501 15th Avenue NE in Seattle’s Pinehurst/Northgate neighborhood. The 121-unit property offers a mix of studio and one-bedroom floorplans. Amenities include 10,000 square feet of programmed spaces offering a resident lounge, media room, fitness center, and furnished outdoor gathering spaces. The Highlander Apartments property was acquired in 2023 as a vacant assisted-living facility and fully renovated into market rate apartments in a strategic value-add repositioning. 

Gantry’s Mike Wood and Mike Taylor, Principals, and Tim Brown, Associate, with the firm’s Seattle production office represented the borrower, a private real estate investor. Highlander Apartments is currently 100% leased at rents below 80% AMI, qualifying the loan for a Fannie Mae “Sponsor Dedicated Workforce Housing” (SDW) loan

According to Gantry’s Mike Wood, “The transformation of the Highlander Apartments from a dated assisted living facility to a contemporary apartment community is a testament to successful value-add investing. The redevelopment of this asset into workforce housing opened the door to agency programs that reward project sponsors with exceptionally attractive terms. By meeting Fannie Mae’s SDW criteria, we were able to secure a fixed rate loan from the agency at some of their best terms, including full-term interest only payments at a higher leverage point than would otherwise be available. This financing now stabilizes the property for a long-term, legacy hold.”