Dealmaker: Walker & Dunlop Arrange $290M in Multifamily Construction, Refinance Loans

May 24, 2017

Walker & Dunlop, Bethesda, Md. arranged $290 million in construction and refinance loans for multifamily properties in California and Nevada.

In Los Angeles, Walker & Dunlop arranged $100 million in construction financing for The Rise Hollywood, a 368-unit, seven-story apartment community in the Hollywood Entertainment District.

Rescore Property Corp., Boca Raton, Fla., a private real estate investment trust founded by Arthur Falcone, Tony Avila and Bill Powers, is developing the property with local partner Cal-Coast, Los Angeles.

Walker & Dunlop managing directors Kevin O’Grady, Daniel Sheehan and Eric McGlynn secured the financing from Bank of the Ozarks, Little Rock, Ark.

The firm also structured six refinance loans totaling $190 million with Freddie Mac, McLean, Va., and Fannie Mae, Washington, D.C., for a 1,240-unit portfolio of Class A and B multifamily communities in California and Nevada.

Walker & Dunlop Senior Vice President Gregory Richardson and Vice President Scott Watson placed the debt for Warmington Properties, Cosa Mesa Calif. The portfolio contains five Freddie Mac loans and one Fannie Mae loan, all of which with 10-year terms and 30-year amortization schedules. The non-recourse, fixed-rate executions included a cash-out component.

Warmington Properties implemented a portfolio-wide value enhancement program, including common-area, building exterior and unit interior renovations.

“These refinances are part of a strategic plan to move Warmington Properties toward a more institutional-grade investment platform,” Warmington President and CEO Mike Riddlesperger said. “The capital resulting from these refinances will be reinvested alongside that of several strategic partners to significantly expand our portfolio throughout the western states.”