Gantry Sees Improving Pace for CRE Mortgage Production

Commercial mortgage banking firm Gantry on Friday reported a steady and improving pace for commercial mortgage production in the first quarter of 2024 as price discovery adjusts to a higher rate environment and timely maturities motivate new assignments moving into Q2 and Q3.

The San Francisco-based firm cited acceptance of a new “higher for longer” rate environment, liquidity in the market from bank alternatives and overall market health outside of the office sector as factors underpinning the momentum.

“Our production teams are successfully sourcing debt solutions for our clients in a tough cycle,” said Gantry principal Braden Turnbull. “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.”

The firm noted a shift from optimism surrounding interest rates coming into 2024 to uncertainty over higher rates and volatility. “This has created friction in the market, putting pressure on commercial real estate financing,” according to Gantry. “Fortunately, the amount of debt capital that remains in the market ready to be deployed is strong at this time.”

How are deals getting financed in today’s uncertain climate? On May 1, Connect Los Angeles 2024 brings together John Manning of MMCC, Gary Bechtel of Red Oak Capital Holdings, Felix Gutnikov of Thorofare and TR Hazelrigg, IV of Avatar Financial Group on the Financing with Debt Panel. Register now to hear from these industry experts.