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Gantry Reports $1.5 Billion of Commercial Mortgage Production for Encouraging H1 2025

via Business Wire

Insurance, Bank, CMBS, Agency, and Debt Fund Lenders Remain Active with a Year-Over-Year Increase to First Half Loan Production Despite Ongoing Rate Volatility; Gantry Grows National Loan Servicing Portfolio to Nearly $24 Billion with 100% of Expected Performance

Gantry, the largest independent commercial mortgage banking firm in the U.S., is reporting an active H1 2025 for commercial mortgage production. Gantry delivered more than $1.5 billion of successful financings across the first half, with loan totals in Q2 2025 slightly above Q1. While Gantry continues to work consistently on refinances for maturing debt, a sustained uptick in property acquisition loans is an encouraging sign that normalized transaction flow is returning. Equally encouraging, Gantry’s internally directed, national loan servicing portfolio is nearing $24 billion through organic growth and continues to function at 100% of expected performance.

“Gantry is seeing green shoots of improvement from market activity and a growing number of new loan requests for both refinancing and acquisition transactions,” said Blake Hering, Principal with Gantry. “While market uncertainties and rate volatility continue to be front and center challenges, especially for new construction, broad acceptance of the current cost of capital and a necessary reset on asset values continues to motivate borrowers dealing with maturing loans through a timely refinance or sale. Access to a wide range of options points to a continued abundance of readily available debt liquidity, fostering a competitive marketplace for borrowers as lenders continue to pursue their 2025 allocation targets.”

Representative transactions from Gantry’s Q2 2025 loan production include:

Multifamily: $59.6 Million Acquisition Loan / Southeast Portfolio – Virginia and Florida

Industrial: $15 Million Acquisition Loan / Bay Area Flex Industrial – Livermore, Calif.

Retail: $21.4 Million Acquisition Loan / James Center – Tacoma, Wash.

Office: $32 Million Permanent Refinance / 611 Cowper – Palo Alto, Calif.

Hospitality: $14 Million Permanent Refinance / Best Western Plus – Moses Lake, Wash.

Self Storage: $31.8 Million Permanent Refinance / Northern and Central California Assets

Manufactured Housing: $28.3 Million Permanent Refinance / Multi-State Portfolio

Production Trends

Gantry has seen a sustained increase of assignments leading to successful acquisitions, with maturities, rate acceptance, and basis resets motivating sellers to meet necessary cap rates at the current cost of capital for a growing pool of buyers. Lenders are pushing for full resolution of maturities with a goal of reconciling their balance sheets and moving old loans off their books, a shift away from the era of ‘extend and pretend’ that began with the onset of rate volatility in 2022. Lenders continue to be consistent on pricing during what remains a volatile period for treasuries, leveraging spread to commit their current programs to a consistent rate range. Gantry continues to have great success refinancing maturing debt with cash neutral or even cash out solutions, with many borrowers opting for shorter term loans between 2-5 years with expectations of an improved future rate climate.

“Gantry’s production teams continue to field an increasing number of loan requests to fund new acquisitions or refinance approaching maturities,” said Mike Wood, Principal with Gantry. “The market is moving forward again, albeit cautiously, but active in comparison to the slowdown in 2023 and 2024. Borrowers have had time to adjust to the realities of a new debt cycle and are transacting realistically with expectations in line with the new status quo.”

  • The marketplace for commercial real estate finance remains accessible with liquidity available from a range of competitive options including insurance, CMBS, bank, credit union, agency and debt fund lenders, all active sources in today’s marketplace.
  • Rate volatility continues to be a challenge for maturing debt and acquisition valuations after a short period of improvement in Q2 2025. Upward pressures remain for treasuries moving into Q3, with expectations that yields will remain elevated at current levels for the foreseeable future with the 10-year ranging from 4.25% to 4.5%.
  • Uncertainty surrounding new tariff and immigration policies and the subsequent impacts to CRE will continue to have a suppressive effect on market conditions.
  • Insurance lenders remain a popular source for non-recourse, fixed rate permanent debt and are adapting to trends favoring shorter loan terms with bridge programs and prepayment flexibility for their longer-term programs.
  • Banks are becoming far more active on new loan originations after stabilizing their balance sheets and are moving on from onerous deposit requirements and other restrictive policies with competitive options often including interest only terms.
  • CMBS executions are making a comeback for transactions pursuing a non-recourse execution at maximum dollars not available elsewhere but remain subject to the uncertainty of rate volatility and laborious underwriting process.
  • Debt funds come at a price but stand as a ready option for properties in transition or requiring short term support to improve metrics before a permanent refinance.
  • The era of ‘extend and pretend’ for maturing loans is coming to end as lenders retire existing loans or move forward on receivership to reconcile outstanding balances.
  • A reset of basis for office properties has increased lender willingness to finance transactions in this space where underwriting can meet DSCR at a realistic valuation.
  • Artificial Intelligence is beginning to play a greater role in loan servicing, with lenders using these tools to better monitor performance and anticipate defaults.

Culture

As an independent, producer-led/producer-owned commercial mortgage banking firm, Gantry takes great pride in the elevation of new partners to the firm’s privately held ownership structure as members of its corporate board of directors and vested shareholders. Principals elevating to Partner status at the close of First Half 2025 include Tom Grzebinksi (New York), Joe Monteleone (St. Louis), and Mark Reichter (Kansas City). Each Principal remains active in day-to-day loan production as market leaders in their respective regions. Gantry also continues to add new talent to grow its client facing loan production teams, with 2025 new hires in the firm’s Portland, Kansas City, and Irvine offices.

Servicing

Gantry maintains its long-running distinction as a Primary Servicer rated by Standard & Poor’s. The average DCR for the firm’s servicing portfolio in the year end 2024 analysis was a solid 2.68 with the average occupancy at 93% across the entire portfolio. The firm’s national loan servicing portfolio now approaches $24 billion and has consistently performed during the volatility and uncertainty of a tough market cycle, with expectations for continued performance in 2025. Representing more than 2,500 unique loans for properties in 46 states, this servicing portfolio includes multifamily, industrial, retail, self storage, office, medical office, hospitality, manufactured housing, and other relevant asset classes, providing the firm with unique insights into asset performance and relevant underwriting trends to the benefit of both borrower and lender clients.

About Gantry

At Gantry, independent thinking is in our genes. As a privately held firm, we take an intentional approach to everything we do. So, as our industry consolidates and becomes less personal, we push ourselves to ignore convention, to set a high standard and to always prioritize people ahead of profits. With over 30 years of experience of loan production and managing a national servicing portfolio approaching $24 billion, our firm leverages a well-established correspondent-driven platform to construct the best financing solutions for our clients. For those seeking a partner that delivers more, we’re a little different. The right kind of different. To find out how and why, click here: www.gantryinc.com

Access to a wide range of options points to a continued abundance of readily available debt liquidity, fostering a competitive marketplace for borrowers as lenders continue to pursue their 2025 allocation targets.

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