Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured a $10 million loan to recapitalize existing debt on the Hillside Apartments located at 111 Hillside Drive in Independence, Mo., an eastside suburb of the greater Kansas City MSA. The garden-style, three-story complex offers 108-units in studio, single, and two-bedroom floorplans across 14 buildings. The fully stabilized property underwent a complex-wide renovation, and units now feature new kitchens with stainless steel appliances and granite countertops, updated flooring and carpet, with included washer/dryer. 

Gantry’s Mark Reichter, Principal, and Alec Frook, Associate, with the firm’s Kansas City production office represented the borrower, a private real estate investor. The seven-year, fixed rate loan was secured through Fannie Mae and includes an interest-only introductory period transitioning to 30-year amortization.

According to Gantry’s Mark Reichter, “This loan was secured for a long-standing client that had acquired this asset and repositioned it before putting on a CMBS loan that helped them recapture a large portion of their equity. After strong rent performance in recent years, we were able to source a new loan that helped pull out trapped equity and because the interest rate was higher than the original loan, the Borrower was not only able to get out of the loan without a prepayment penalty, but actually made money off of defeasing the loan. The new financing sets this asset up for a long-term, legacy hold with enhanced cash flows. A rare opportunity in a market borrowers seldomly experience.”