Dealmaker: Walker & Dunlop Originates $469 Million Multifamily Portfolio Loan

Walker & Dunlop, Bethesda, Md., originated a $469 million portfolio loan backed by 13 multifamily properties. 

W&D Managing Director Stephen Farnsworth led the New Orleans-based team that structured the refinance for borrower Cortland Partners, Atlanta. The properties within the portfolio include 4,871 rental units in Texas, Georgia and Florida. 

Farnsworth said the seven-year Freddie Mac floating-rate loans include two years of interest-only payments followed by 30-year amortization schedules. 

The underlying loans in the portfolio rate-locked and closed during the second and third quarters, Farnsworth noted. “Freddie Mac and Cortland worked to coordinate multiple closing schedules and unique expansion riders,” he said. 

Cortland Partners Chief Investment Officer Mike Altman said the refinance allowed Cortland Partners to monetize value within the portfolio.

During the summer Walker & Dunlop secured $672 million for a joint venture formed by The Scion Group LLC, Chicago, GIC, Singapore, and Canada Pension Plan Investment Board, Toronto, to acquire University House Communities Group, Dallas. 

Walker & Dunlop Managing Directors Brendan Coleman and Will Baker arranged the financing through Fannie Mae’s Credit Facility execution, a loan structure for large transactions backed by a number of assets.

Scion Chief Investment Officer Avi Lewittes said the University House Communities acquisition represents the joint venture’s first investment. UHCG’s portfolio represents one of the largest Class A student housing portfolios in the United States.