Gantry successfully obtained $18.3 million in permanent loans for two apartment complexes, Spinnaker Pointe Apartments in Milpitas and Crossroads Village Apartments in Fremont. These properties, which consist of a total of 540 units, were fully stabilized.
The borrower, a private real estate investor, requested flexibility with no prepayment fees after the first 12 months from loan closing and rates around mid-5%. They also wanted non-recourse terms and a smooth loan closing process. Gantry’s principal Tom Dao and senior associate Erinn Cooke secured the loans from one of their correspondent life company lenders with 30-year amortization.
According to Dao, working on this project was enjoyable because both the borrower’s objectives and lender’s objectives were aligned. The lender wanted conservative underwriting while the borrower was willing to agree to it. On the other hand, the borrower desired flexibility which was accommodated by complying with limited underwriting risks by the lender.
