Gantry, the largest independent commercial mortgage banking firm in the U.S., has reported a steady and improving pace for commercial mortgage production in the first quarter of 2024. As the market adjusts to a higher rate environment and timely maturities prompt new assignments moving into the second and third quarters of 2024, Gantry remains actively engaged in identifying financing options that meet the demands of the current commercial real estate cycle.
“Our production teams are successfully sourcing debt solutions for our clients in a tough cycle. That’s not saying we aren’t working harder to optimize the outcome, but we are still securing viable loans for a wide range of borrowers,” said Gantry Principal Braden Turnbull.
Gantry’s recent transactions for the first quarter of 2024 production include a variety of property types:
- Industrial: $91 Million Construction-to-Permanent Loan for Gillespie Field iPark
- Multifamily: $128 Million Construction-to-Permanent Loan for Legado at the Met
- Office: $28.5 Million Permanent Loan for Credit Tenant Repositioning of U.S. DOJ Facility
- Medical Office: $28 Million Refinance for Torrance Memorial Specialty Center
- Retail: $12.8 Million Permanent Loan for Citrus Landing Grocery-Anchored Retail Center
- Self Storage: $9.5 Million Permanent Loan for Store Here Facilities
Gantry’s analysis of the Federal Reserve’s recent communications suggests that U.S. capital markets are likely to maintain higher interest rates throughout 2024. While there may be hopes for Fed rate reductions this year, it’s crucial to recognize that a return to pre-volatility levels is not expected in the near term. Nevertheless, the market is adapting, with price discovery aligning with the new cost of capital. Most performing assets and relevant developments are benefiting from ample liquidity, thanks to a diverse range of loan programs tailored to the current market cycle. Optimism persists for potential rate relief in the second half of 2024, as market rates appear to have stabilized, encouraging market participants to adapt, adjust, and engage in transactions.
“Our relationship with hundreds of CRE debt sources has made us a relevant partner for a client’s executive team as we navigate a tough cycle,” said Gantry Principal Paddy Ryan. “As banks have stepped back from the market to shore up their operations and process shifting regulatory policy, Gantry’s correspondent life company lenders are a reliable alternative for permanent debt and a wide range of construction-to-permanent, bridge, and participating loans, often with some new flexibility on prepayment.”
Looking forward, Gantry highlights several relevant trend considerations for commercial mortgage production:
- A shift from optimism surrounding interest rates to uncertainty with higher rates and volatility.
- Pending maturities on performing assets refinancing with relatively attractive permanent loan options.
- Availability of new construction funding from various sources for viable projects.
- Active involvement of life companies, agencies, conduit lenders, credit unions, debt funds, and equity providers across a range of financing options.
Gantry maintains its distinction as a Primary Servicer rated by Standard & Poor’s. With an $18 billion portfolio encompassing over 2,100 unique loans spanning the entire range of CRE asset categories, the firm’s portfolio performance consistently meets expectations.
About Gantry:
Gantry is a privately held firm with over 30 years of experience in loan production and managing an $18 billion national servicing portfolio.
