Gantry Obtains Refi for Suburban Portland Apartments

The financing will retire loans on multiple phases of the property.

Commercial mortgage banking specialist Gantry has arranged a $23 million loan to refinance the Mission Hills Apartments at 11900 NE 18th St. in Vancouver, Wash., representing the borrowers, an unnamed family with real estate holdings. The permanent loan retires two maturing loans on different phases of the property.

The garden-style property totals 556 units, offering a mix of one-, two-, and three-bedroom homes across many buildings on about 33 acres. Unit amenities include a washer/dryer and a microwave in all residences, vaulted ceilings and high-speed Internet.

Common-area amenities include a clubhouse, business center, pool and spa. The property has 600 parking spaces.

Mission Hills Apartments was originally completed in 2004 and is currently 90.8 percent occupied, according to Yardi Matrix data. In 2020, average rent at the property was $1,060 a month. By 2024, the average was $1,748 a month.

The 10-year, fixed-rate loan was secured through one of Gantry’s correspondent life company lenders and features 30-year amortization. Gantry’s Blake Hering, principal, and Abi Hunter, associate, who are with the firm’s Portland production office, represented the borrower in the deal.

With the acquisition of Triad Capital Advisors in 2024, Gantry grew its national loan servicing portfolio to $20 billion as of the third quarter of 2024, encompassing over 2,400 loans across the full range of CRE asset categories. The company anticipates further growth in 2025, as further interest rate cuts begin to offer relief from debt service strain for the real estate industry.

Portland multifamily still expanding

Vancouver, Wash., has been a consistent growth market in recent decades. The current population is more than 198,000, according to Census Bureau estimates released in May 2024, up from a 2020 population of more than 191,200. World Population Review estimates that the suburb’s population will be 206,800 by 2029.

Metro Portland saw 5,147 apartment units come on line during the 12 months ending in August 2024, or 2.8 percent of existing stock, according to Yardi Matrix data. That pace is 110 basis points higher than the national average.

Rents are still eking out gains, though not as quickly as before. The average advertised asking rent in greater Portland was up 0.4 percent on a trailing three-month basis as of August, to $1,775, according to Yardi Matrix, or 30 basis points higher than the U.S. figure. Rental growth has been in positive territory since March, reaching its peak at 0.8 percent in June.