Dealmaker: Walker & Dunlop Provides $112M for Multifamily, Mixed-Use Assets

Walker & Dunlop, Bethesda, Md., structured two loans totaling $94.7 million for Avesta Biscayne, a 402-unit Class B multifamily property in Miami.

Alison Williams and Matt Baldwin, Vice Presidents in Walker & Dunlop’s Tampa office, arranged a six-month, $48.4 million loan through their firm’s proprietary bridge lending platform. This program offers floating-rate interim loans to borrowers seeking to acquire or reposition multifamily and healthcare properties.

After 63 days, Walker & Dunlop transitioned the loan to a $46.3 million permanent Freddie Mac floating-rate execution. The 10-year loan qualified for Freddie Mac’s Green Up program, which offers discounted loan pricing for owners who commit to property improvements that will reduce energy or water use by at least 15 percent. The loan included five years of interest-only payments at a 75 percent loan-to-value ratio.

Avesta Biscayne consists of six five-story residential buildings on 11 acres in the North Miami Biscayne neighborhood, one of Miami’s fastest-growing areas.

In Wisconsin, Walker & Dunlop Vice Presidents Tim Cotter and Jeff Schmidt structured an $11.8 million loan for Summit Center Marketplace, a mixed-use property with retail, office and medical office spaces in Oconomowoc.

Cotter said the 10-year fixed-rate loan from a commercial mortgage-backed security lender had a 30-year amortization schedule. 

The fully occupied property is anchored by Aurora Health Care, an investment-grade medical office tenant. Retail tenants include national chains such as Rosatti’s, The UPS Store and Anytime Fitness.

“The owner has made significant improvements to the tenancy and leasing of the property over the past two years and it continues to be a staple for residents in the local area,” Cotter said.

Schmidt and Cotter also structured a $5.3 million loan backed by Clearwater Apartments, a garden-style community in Waukesha, Wis. 

The 15-year permanent loan from Mutual of Omaha refinanced a bank construction loan following property stabilization. Schmidt and Cotter were able to show positive leasing momentum and sound fundamentals in the submarket. 

Constructed in phases in 2014 and 2015, the 55-unit Clearwater Apartments occupies 8.5 acres in southwest Waukesha.