Dealmaker: Walker & Dunlop Arranges $85M for Hotel, Multifamily Assets

Walker & Dunlop, Bethesda, Md., structured $85.3 million in financing for a Tucson, Ariz. hotel property and a Leesburg, Va. multifamily community.

In Arizona the firm arranged $40 million for the AC Marriott in Tucson. Completed in late 2017, the eight-story, 136-key property was the first hotel built in downtown Tucson since the early 1970s. In its first full year of operation the hotel exceeded pro-forma and occupancy expectations.

Walker & Dunlop Managing Directors Jim Pierson and Keaton Merrell and Vice Presidents Alison Williams and Matt Baldwin identified a commercial mortgage-backed securities provider to provide the cash-out financing. The 10-year loan included three years of interest-only payments to lower property developer Tucson Urban’s debt service payments and allowed the firm pay off its existing construction debt.

In Leesburg, Va., Walker & Dunlop Assistant Vice President Alexandra Huffman and Managing Director Andrew Tapley structured $45.3 million for Capital Square 1031’s acquisition of 316-unit Bellemeade Farms Apartments. The origination team rate-locked the 10-year fixed-rate loan one day after receiving the application. The team also helped Capital Square 1031 structure its debt to accommodate a Delaware Statutory Trust structure, which permits investors to acquire interests in the property in a tax-deferred exchange under Internal Revenue Code Section 1031.

Occupying 15.7 acres, Bellemeade Farms Apartments comprises 12 residential buildings and a clubhouse.