Dealmaker: Walker & Dunlop Arrange $96M for Multifamily Assets

Walker & Dunlop, Bethesda, Md., structured loans totaling $75.6 million with Freddie Mac, McLean, Va., for four multifamily properties in Phoenix, Ariz. and Dallas-Fort Worth, Texas.

Senior Vice President and Managing Director Alex Inman arranged the debt placement for the Class B garden-style communities. He said the portfolio’s four 10-year loans had interest-only payment periods ranging from five years to full-term.

“The executions utilized Freddie Mac’s Green Up financing program, which offers favorable rates and generates savings for borrowers whose properties meet certain criteria for reduced energy and water consumption,” Inman said. “By implementing this program, we were able to provide long-term fixed-rate financing, which will protect the borrower from the continuing rise in interest rates.”

W&D Senior Vice President Tom Toland also structured a $20.8 million loan for Centennial Crossing at Lenox Place, a Class B garden-style community in Goodlettsville, Tenn. Toland worked with repeat-sponsor M3 Multifamily to secure an early rate lock through Fannie Mae’s Green Rewards program.

“The property’s unique Tenants-in-Common borrower structure presented an additional challenge,” Toland said. But he noted that the sponsor received favorable loan terms including a 10-year fixed-rate loan with five years of interest-only payments and a 30-year amortization schedule. Other terms included a 1.37x debt service coverage ratio and a 4.30 percent rate.

Centennial Crossing at Lenox Place is a 264-unit property close to U.S. Route 65 northeast of downtown Nashville, Tenn. “Given its affordable rents and close proximity to the central business district, the submarket is a popular area for young professionals, Toland said, noting that annual rent growth approached 8.8 percent in 2016.

M3 Multifamily plans to make $2 million in renovations during the first three years, Toland said.