Dealmaker: Walker & Dunlop Originate $283M for Multifamily Properties
Walker & Dunlop, Bethesda, Md., originated loans totaling $282.7 million for multifamily properties in Washington, D.C. and Texas.
In Washington, D.C. Walker & Dunlop Managing Directors Brendan Coleman, Keith Melton and David Strange originated loans totaling $183 million for Park Chelsea and 2M, two LEED-certified multifamily properties
The origination team arranged the transactions through Fannie Mae’s Green certification execution and HUD’s refinance program on behalf of borrower WC Smith, Washington, D.C.
“These two transactions and the success these properties have seen illustrate renters’ strong desire for affordable rental housing that is also environmentally conscious,” Coleman said. He noted that WC Smith focuses on increasing affordable housing in Washington and said the 2M transaction demonstrates that affordability can be achieved through environmentally friendly development.
Coleman said 2M is a mixed-income rental community in the city’s NoMa submarket. More than 90 percent of its units are dedicated to low-income tenants, including Section 8 voucher holders. “The refinance loan will provide very significant annual debt service savings for WC Smith, just two years after closing the original HUD development loan,” he said. “The property was 99 percent leased at closing, demonstrating the area’s strong demand for affordable rental options.”
Park Chelsea is the first of three properties that will be known as The Collective, a rental community in Washington’s Capitol Riverfront neighborhood. As a LEED Silver building, the property qualified for Green Building Certification financing, which enabled Walker & Dunlop to structure discounted pricing, maximize loan proceeds and achieve an accelerated closing timeline. Park Chelsea was 75 percent leased at closing.
In Texas, Walker & Dunlop Senior Vice President and Managing Director Alex Inman and Vice President Jon Hyduke arranged loans totaling $99.7 for a borrower to acquire six Class B multifamily properties totaling 1,795 units.
A large regional bank provided the three-year bridge loans, which Inman and Hyduke structured at 75 percent loan-to-cost to provide capital for renovations. “After canvassing the market, the most desirable financing option for the borrower ended up being with a regional bank, whose bridge loan included an attractive ‘value add’ component,” Inman said.
