Reports: Gantry Achieves $3.1B in New Commercial Mortgage Production for 2024
Gantry, the largest independent commercial mortgage banking firm in the U.S., reports a total of $3.1 billion in commercial mortgage production for 2024, a figure that closely aligns with its pre-COVID production levels. This strong performance highlights the firm’s continued resilience in the commercial mortgage industry despite the challenges faced in the market.
In addition to reporting robust production numbers, Gantry’s national loan servicing portfolio also grew significantly to $23 billion in 2024. This growth was driven by new loan placements and the strategic acquisition of servicing portfolios, particularly in the Midwest and Western U.S. regions. The firm reports that nearly all loans in its portfolio are performing as expected, even amid a more challenging market cycle. These positive results reinforce Gantry’s position as a leading player in the commercial real estate (CRE) finance space.
Jeff Wilcox, Principal at Gantry, reports that “the past year saw the market further adjust to the higher cost of capital. This adjustment positively impacted production, and a favorable dip in rates through the summer into fall presented opportunities for many clients to lock in attractive permanent financing.” Wilcox further reports that rates remained favorable for most legacy loans, excluding office properties, and noted that the upcoming year would likely present a learning curve due to shifting policy directions from the new administration.
Key transactions from Gantry’s 2024 production include:
- Industrial: $91 million construction-to-permanent loan for Gillespie Fields iPark in San Diego
- Multifamily: $128 million construction-to-permanent loan for Legado at the Met in Santa Ana
- Office: $84.5 million purchase financing for Topa Financial Center in Hawaii
- Self-storage: $70 million refinance for Trojan Self Storage Portfolio in California
- Retail: $55.9 million permanent refinance for Huntington Oaks Retail in Monrovia
- Special Use: $7.15 million construction-to-permanent loan for Auteur Wines in Healdsburg
Throughout 2024, Gantry consistently reports strong production levels. While refinancing maturing construction, bridge, and permanent debt made up a significant portion of the firm’s activities, the company also reports financing numerous acquisitions and new developments. Developers found access to both traditional construction and construction-to-permanent loans, with banks, insurance lenders, and debt funds competing in the development space. Life companies played an active role in financing during 2024, and Gantry expects them to continue their involvement in 2025.
Patrick Barkley, Gantry Principal, reports that “Gantry’s loan producers used 2024 as an opportunity to work with clients on a holistic review of their commercial real estate holdings to optimize an overall cost of capital across their portfolios.” He adds that while sales and acquisitions were light in 2024, debt access remained favorable where values and cap rates aligned. Barkley also reports that he remains optimistic about the cost of capital in 2025, assuming no unforeseen disruptions.
As Gantry looks toward 2025, several key market trends are top of mind:
- Policy direction from the new administration and how the market will respond to it remains an uncertainty. Gantry reports that more clarity will emerge following key meetings of the Mortgage Bankers Association (MBA) in February and April.
- The Federal Reserve delivered a 100-basis point rate cut in Q4 of 2024, and while further rate cuts are expected, Gantry reports that the pace may slow in 2025.
- Yields on the 10-year treasury saw a notable increase in Q4 2024, directly impacting commercial real estate lending. Gantry reports that permanent loan rates are expected to remain in the high 5% to low 6% range as a result.
- Banks have remained relatively quiet in this cycle, but Gantry reports that they are expected to become more active as liquidity conditions improve. Life companies are seen as a consistent source of permanent financing.
- Debt funds and private lenders continue to fill the gaps left by banks, particularly for bridge and construction financing. Gantry reports that these sources may charge higher rates due to their focus on yield and risk.
- Construction financing remains active, but rising labor and material costs, coupled with higher interest rates, have driven up project costs, Gantry reports.
- Disaster recovery efforts in the Southeast and Southern California will strain development planning temporarily, Gantry reports, as labor and materials costs adjust.
In terms of growth and expansion, Gantry reports that it has continued to build its national production team through mergers and key hires. The firm strategically acquired Triad Capital Advisors, expanding its presence from the Western U.S. to key Midwest markets. Additionally, Gantry absorbed the operations of Westcap, a Southern California-based firm. The company also reports its first expansion into New York City with a key strategic hire, signaling further growth in the Northeast.
Regarding servicing, Gantry maintains its long-running distinction as a Primary Servicer, with its national loan servicing portfolio growing to $23 billion in 2024. This portfolio now includes nearly 2,600 unique loans across various CRE asset categories. Gantry reports that its internally serviced loans have performed well throughout a challenging market cycle, and it expects continued strong performance moving into 2025.
Gantry’s success in 2024 demonstrates its ability to adapt to changing market conditions while remaining a reliable partner for clients seeking financing solutions. The firm reports that with an experienced team and a well-established correspondent-driven platform, Gantry is well-positioned to navigate the evolving landscape of commercial real estate finance in 2025 and beyond.well-positioned to navigate the evolving landscape of commercial real estate finance in 2025 and beyond.
