SAN FRANCISCO–(BUSINESS WIRING) – Gantry, the largest independent commercial mortgage banking company in the United States, completed more than $ 2.1 billion in new commercial placements in the first half of 2021. This amount reflects a very favorable lending environment for borrowers across the full range of commercial real estate property asset classes.
“So far this year, the aggressive policies that have been implemented to stabilize the economy have resulted in the favorable conditions in the capital markets we see today. This has prompted a wide range of lenders to prioritize the distribution of commercial mortgages, ”said Michael Higerty, Chief Financial Officer and Chief Executive Officer of Gantry. “As a result, the climatic conditions have provided the vast majority of commercial property owners with many attractive financing options for refinancing or purchasing real estate. Competition among lenders for quality assets has created a market for borrowers, and we continue to see generation-friendly rates and conditions that should force asset owners and investors to actively rethink their options in the current cycle. ”
With regard to capital allocation, the origin of Gantry in the second quarter of 2021 was determined as follows (in descending order):
Asset class: multi-family, industrial, office, retail and warehouse.
Loan volumes: life companies, banks and credit unions as main sources of financing.
Cost of loans: Life companies, agencies and banks for the total amount of loans.
Notable trends in their respective industries in the portal business include:
Gantry issued a total of 123 unique loans in the second quarter and 238 YTD. Lenders Life Company, CMBS and GSA remain extremely active and are often the preferred source of long-term debt, while banks and credit unions remain an attractive source of medium-term credit structures. Key trends to consider when assessing Gantry’s overall performance for the first half of 2021 include:
The growing interest of lenders in the placement of major and exclusive retail assets has led to an increase in lending to this asset class.
Lenders’ appetite for self-storage products has increased significantly as the asset class performed very well during the pandemic and rent increases are expected to follow.
Banks and credit unions remain competitive in terms of rates and income.
Life companies remain an attractive source of long-term loans with low debt levels.
Several lenders who were on the sidelines during the pandemic to sort out their portfolios have returned to the market with aggressive prices to win new business.
Long-term rated Gantry by Standard & Poor’s continues to deliver nearly 100% of the expected results from its over $ 17 billion serviced commercial mortgage portfolio, spanning over 2,000 loans in 43 states. In addition, the number of requests for relief or change in conditions from borrowers has dropped significantly, as even formally problem loans return to their original maturities. The company continues to mitigate the impact of problem loans early in the process through the quick action of a team of seasoned experts with years of experience managing problem market dynamics. Gantry expects asset performance to continue to move forward with these efforts for the foreseeable future.
Gantry has continued to successfully operate in the post-COVID work-from-home model and now plans to return to office work for all offices. The move includes the opening of a new and expanded dedicated manufacturing office in Portland, Oregon, reflecting the growth of the Pacific Northwest manufacturing group last year. As the largest independent commercial real estate banking firm in the United States and a leading member Strategic Mortgage Alliance (SAM) network, Gantry plans to continue building its production team in 2021 in existing and new markets.
Gantry, a privately held company headquartered in San Francisco, is a full-service mortgage banking firm with an extensive line of correspondent lenders leveraging Gantry’s manufacturing, closing and servicing capabilities. Founded in 1991, Gantry currently employs nearly 90 professionals in regional offices in the Western United States and New York. The company’s national service platform outstanding balance of over $ 17 billion represents over 2,000 loans located in 43 states. Gantry is rated as primary service personnel by Standard & Poor’s and is one of the few select non-bank / non-insurance companies with this designation. For more information please visit gantryinc.com…