Dealmaker: Walker & Dunlop Secure $174M
Walker & Dunlop, Bethesda, Md., structured $120 million in financing for the Graham Portfolio of 29 retail, office, industrial, flex, multifamily and land lease assets properties in Miami Lakes, Fla.
Owned and developed by the Graham Cos., Miami Lakes, the portfolio totals 1.2 million square feet.
The Walker & Dunlop team was led by Managing Director Al Rex, Assistant Vice President Marty McGrogan and Senior Financial Analyst Ariel Zucker. The team secured the portfolio refinancing through AIG, New York. The fixed-rate non-recourse loan matures in 2033.
Though the transaction was structured as a portfolio execution, each property was unique and required a tailored underwriting and valuation approach, Rex noted. “The lender was very comfortable with the sponsorship and their long-term ownership strategy,” he said.
McGrogan said the capital markets are “very interested” in mixed-property portfolios of this type. “Despite headwinds in the retail space, the neighborhood centers in the portfolio have strong occupancy and serve a meaningful purpose for the local residents,” he said.
Located less than 20 miles northwest of Miami, Miami Lakes is a master-planned community catering to the county’s workforce. The community was designed to be walkable and includes residential, retail, commercial, industrial and mixed-use properties. All properties in the Graham Portfolio are within a mile of downtown Miami Lakes.
In Jacksonville, Fla., Walker & Dunlop Managing Director Alex Inman structured $53.6 million in bridge financing for a five-property, 1,104-unit multifamily portfolio.
Inman said the loans’ cross-collateralized financing structure met the needs of borrower S2 Capital LLC, Dallas. The debt placement team also negotiated special release provisions to enable the borrower to sell individual properties if desired.
As part of its business plan, S2 Capital will complete an extensive value-add program for each property in the portfolio, including improvements to common amenities, significant interior upgrades and rebranding.
“Value-add properties continue to prove a prudent investment across the country,” Inman said. “The multifamily housing industry is enjoying a strong period of growth and activity thanks to favorable economic conditions, job growth and rising population in many markets.”
Constructed in the 1960s, each property in the portfolio is a garden-style apartment community near major thoroughfares. Inman said the Jacksonville market has strong employment fundamentals and high demand for multifamily housing.
