Dealmaker: Walker & Dunlop Arranges $105M to Refinance Raleigh Community
(Photo credit: Capital Square)
Walker & Dunlop, Bethesda, Md., arranged a $105 million loan to refinance Maeve, a newly delivered 297-unit high-rise community located in an opportunity zone in Raleigh, North Carolina’s Warehouse District.
The Economic Opportunity Zone census tract is a program established by Congress through the Tax Cuts and Jobs Act of 2017 to encourage long-term investment in designated low-income communities through incentives such as deferred or reduced capital gains taxes.
Walker & Dunlop Capital Markets Real Estate Finance arranged the refinance on behalf of Capital Square. Alexandra Huffman, Justin Nelson, and PJ Feichtmeier arranged the floating-rate, interest-only bridge loan with TPG Real Estate Finance.
“This transaction highlights several unique aspects, including Maeve’s institutional-quality design, early lease-up profile and an Opportunity Zone equity structure inclusive of preferred equity,” said Huffman, managing director of Capital Markets Real Estate Finance at Walker & Dunlop. “Executing a refinance while maintaining preferred equity in the capital stack required a thoughtful capital solution, particularly in a market navigating elevated new supply.”
Completed last year, Maeve has 297 apartment homes and more than 10,000 square feet of street-level retail space. The community offers studio and one- to three-bedroom residences and amenities including a rooftop lounge, coworking spaces and golf simulator.
“Raleigh continues to benefit from sustained population growth and economic expansion, driving consistent renter demand,” said Natalie Mason, executive vice president and co-head of development at Capital Square. “Maeve’s location within a designated Opportunity Zone was also a key component of our investment thesis, providing meaningful tax advantages alongside the property’s strong market positioning.”
Positioned where the Boylan Heights neighborhood, Dorothea Dix Park and downtown Raleigh meet, Maeve is among the few Class A apartment communities in the downtown submarket. Its proximity to U.S. Route 70 also provides convenient connectivity to the Research Triangle and several nationally recognized universities, including Duke University, the University of North Carolina at Chapel Hill and North Carolina State University.
