Dealmaker: Walker & Dunlop Secures $46M For Retail, Multifamily Assets

October 31, 2017

Walker & Dunlop, Bethesda, Md., secured $45.9 million for a California shopping center and a Redmond, Wash. multifamily property.

The firm closed a $23.9 million 10-year loan for The Trading Post Shopping Center, a 127,750-square-foot multi-tenant retail property in Clovis, Calif.

In 2015 Walker & Dunlop Managing Director Jeff Hudson arranged a construction line of credit that funded the property’s acquisition, rehabilitation and tenant improvements. At the time, the shopping center was only 20 percent occupied with two unanchored spaces. Since then, borrower Rich Development Enterprises, San Pedro, Calif., has renovated and expanded the center with national and regional credit tenants. Current occupancy exceeds 95 percent.

When The Trading Post achieved full stabilization earlier this year, Rich Development Enterprises again engaged Walker & Dunlop to seek permanent financing. Hudson and Assistant Vice Presidents Riley Manke and Andrew Westling negotiated with the existing lender to convert the floating-rate construction line of credit to a fixed-rate permanent loan without requiring any updated third-party reports.

The Trading Post Shopping Center lies in the newest retail growth corridor in the area. Sprouts Farmer’s Market and Ross Dress for Less anchor the center and Sketchers, Tuesday Morning, Dollar Tree, Deli Delicious and Union Bank occupy in-line space.

In the growing Seattle submarket Redmond, Walker & Dunlop Capital Markets Managing Directors Jeff Robbins and Matt Ewig structured a seven-year floating-rate loan to refinance Pure Apartments. The Freddie Mac financing included two years of interest-only payments.

Robbins noted the property had just stabilized at closing and said the asset includes a retail component still in the lease-up process. “Despite these conditions, thanks to the superior quality and location, we were able to provide the sponsor with sufficient proceeds at the right rate to recapitalize the equity structure,” he said.

Located four miles from Microsoft’s headquarters and less than one-half mile from the employer’s Millennium Campus, Pure Apartments has 105 units. Nearby Redmond Town Center has more than 100 shops, restaurants, lodging and entertainment venues.