Gantry has secured a $7.5 million, cross-collateralized, permanent loan to retire construction debt from the development of 24 build-for-rent townhomes in Vancouver, Washington.

Gantry Director Charlie Kokernak secured the financing on behalf of the borrower, a private real estate developer. The loan features a fixed rate and includes an interest-only term through the entirety of the fixed period and a favorable declining prepayment penalty. Occupancy had just stabilized at the time of closing.

“The advent of the build-for-rent model has led to new underwriting demands for developments comprised of a traditional single-family format that will serve as rental units,” said Kokernak. “Time was of the essence for the assignment as the existing construction loan had reached maturity and standard underwriting typically applied to conventional apartments was drastically constraining proceeds from other capital sources.”

Gantry is a mortgage banking firm with correspondent lenders that utilize the firm’s production, closing, and servicing capabilities.