SAN FRANCISCO – (COMMERCIAL THREAD) – Gantry, the largest independent commercial mortgage bank in the United States, completed more than $ 2.1 billion in new commercial placements during the first half of 2021. This total reflects a very classed lending environment. real estate assets.
“So far this year, the aggressive policy measures that have been implemented to stabilize the economy have resulted in the favorable conditions in the capital markets that we see today. This has motivated a wide range of lenders to prioritize commercial mortgage grants, ”said Michael Heagerty, chief financial officer and director of Gantry. “The resulting climate has provided the vast majority of commercial property owners with a variety of attractive financing options for refinancing or acquiring properties. Competition from lenders for quality assets has created a market for borrowers and we continue to see favorable rates and terms across the generations that should force asset owners and investors to actively review their options in the current cycle.
In terms of capital allocations, Gantry’s creations in Q2 2021 were defined by the following elements (listed in descending order):
Asset class: Multifamily, industrial, office, retail and self-storage.
Loan volumes: Life insurance companies, banks and credit unions are the main sources of funding.
Loan values: life insurance companies, agencies and banks for total loan values.
Notable trends in relevant Gantry verticals include:
Gantry generated a total of 123 unique loans in the second quarter and 238 year-to-date. Lenders from life insurance companies, CMBSs and GSAs remain extremely active and are often the preferred source of long-term debt while banks and credit unions remain an attractive source for medium-term lending structures . Key trends to consider from Gantry’s production totals for the first half of 2021 include:
Growing interest by lenders in essential and exceptional retail asset allocations has led to an increase in loan placements for this asset class.
Lenders’ appetite for self-storage products has increased dramatically as the asset class has performed extremely well during the pandemic, with expectations that rent increases will follow.
Banks and credit unions remain competitive in terms of rates and products.
Life insurance companies remain the attractive source of long-term, low-leverage loans.
Several lenders, on the sidelines during the pandemic to sort their portfolios, have returned to the market with aggressive prices to win new business.
Gantry, a long-time Standard & Poor’s rated primary services provider, continues to deliver nearly 100% of expected performance on its $ 17 billion plus commercial mortgage serviced portfolio covering more than 2,000 loans in 43 states. In addition, borrower requests for relief or modification have declined considerably, even as officially distressed loans revert to their original performance conditions. The company continues to mitigate the impacts of problematic loans early in the process through the swift action of a team of seasoned experts with decades of experience navigating troubled market dynamics. Gantry expects to see a continued trend in asset performance for the foreseeable future as a result of these efforts.
Gantry has continued to operate successfully in the post-COVID work-from-home model and is now considering a return to office operations for all offices. This move includes the opening of a new and expanded dedicated production office in Portland, Oregon, reflecting the business growth of its Pacific Northwest production team over the past year. As the largest independent commercial real estate banking company in the United States and a leading member of the Strategic Mortgage Alliance (SAM) network, Gantry plans to continue to develop its production team in 2021 in existing and new markets.
About the gantry
Gantry, a privately held company headquartered in San Francisco, is a full-service mortgage banking company with a wide range of correspondent lenders utilizing Gantry’s production, closing and service capabilities. Founded in 1991, Gantry currently has nearly 90 professionals in regional offices in the western United States and New York. The company’s national service platform loans outstanding of over $ 17 billion represent more than 2,000 loans located in 43 states. Gantry is classified as a Primary Servicer by Standard & Poor’s and is one of the few non-bank / non-insurance chartered companies with this designation. For more information, please visit gantryinc.com.