Dealmaker: Walker & Dunlop Secures $64M in Kansas

Walker & Dunlop, Bethesda, Md., structured two loans totaling $64 million on two Overland Park, Kan., apartment communities for Overland Park Equity LLC.

Managing Director Jim Cope led the Walker & Dunlop team that structured the Fannie Mae financing with a 10-year term that included three years of interest-only payments. The loan was underwritten to a 1.25 debt service coverage ratio.

Mandel Group, Milwaukee, Wis., and Romspen Investment Corp., Toronto formed Overland Park Equity LLC last year to purchase the assets. Jeff Stingley of CBRE Capital Markets brokered the transaction.

“The properties are in ‘A’ locations and ideal candidates for our value‐add philosophy that enhances mature Class B apartment assets,” said Mandel Group Vice President and Director of Acquisitions Jason Babcock. He called Overland Park a “robust” submarket with billions of dollars of new development underway. Located 12 miles from downtown Kansas City, Overland Park is the second-largest city in Kansas.

Highland Ridge Apartments includes 370 units and The Lodge of Overland Park includes 548 units.

“Near-term projections indicate the addition of thousands of new jobs to an already healthy local economy,” Babcock said. Nearby major developments include CityPlace, a $350 million mixed‐use development under construction next to the Highland Ridge property, and a pending $2.4 billion redevelopment of the Brookridge Country Club property adjacent to The Lodge at Overland Park. In addition, Cerner Corp. recently broke ground on a $4.45 billion office campus 10 minutes away from the properties. When completed, the campus will house up to 16,000 health care information technology workers.