Buffalo, NY Gantry has secured $38.15 million of construction financing for the development of The Lawrence Apartments. The class A project will deliver a four-story, 132-unit building at 983 Michigan Ave., adjacent to the Buffalo Niagara Medical Campus.
Gantry’s Daniel Monte, senior director, with the firm’s Phoenix production office secured the loan on behalf of the borrower, a private real estate joint venture. The five-year loan was provided by a regional bank and features a construction to mini-perm structure at a fixed interest rate.
According to Monte, “Construction financing had its own set of challenges in the current post-pandemic market climate. Now that the volatile materials and labor costs of recent years are stabilizing, we are better able to accurately underwrite loans to true cost and a projected value. Gantry’s roster of correspondent life companies, debt funds, and banks are all sources in the current cycle, and our job is to identify the right loan and lender to maximize proceeds for each unique project we represent. While most banks are not currently active in originating new loans, The Lawrence was attractive to an experienced regional bank that is financing the build in a mini-perm structure, where sponsors will have a consistent cost of capital with a fixed rate during lease-up and stabilization.”
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