Dealmaker: Walker & Dunlop Arranges $80M for Milwaukee Office Building
Walker & Dunlop, Bethesda, Md., structured an $80 million non-recourse loan for 833 East Michigan, a 359,000-square-foot Class A office building in Milwaukee’s central business district.
PGIM Real Estate Finance, Newark, N.J., provided the loan, which refinanced existing construction debt.
Executive Vice President Jim Cope and Assistant Vice President Andrew Schoene structured the three-year interest-only loan for sponsor Irgens, Milwaukee. The financing provided Irgens funds for future tenant improvements and leasing commissions to increase occupancy.
The 17-story lakefront property that opened in 2016 is the first significant multi-tenant office development in downtown Milwaukee in nearly a decade. Schoene noted the downtown area has seen an influx of tenants from the suburbs, giving 833 East Michigan a strong lease-up.
“Lenders were receptive to the large mortgage investment given the property’s high-quality construction, strong leasing activity and location in downtown Milwaukee’s growing market,” Schoene noted.
833 East Michigan sits within a collection of six office and hotel buildings positioned around U.S. Bank Center, all connected physically by skyway or tunnels. Property tenants include PricewaterhouseCoopers, KPMG and Godfrey & Kahn.
In National City, Calif., near San Diego, Walker & Dunlop structured an $82 million Fannie Mae loan for Paradise Village. The Class A independent living, assisted living and memory care community represented one of the first Fannie Mae Green Rewards loan backed by a seniors housing property.
Walker & Dunlop Managing Director Jeff Ringwald and Senior Vice President Bill Jackson arranged the ten-year loan with two years of interest-only payments followed by a 30-year amortization schedule for sponsor Generations Senior Living.
The financing replaced a previous construction loan and provided cash out to enable Generations Senior Living to finance an adjacent, newly developed memory care facility when stabilized.
The Fannie Mae Green Rewards program allows up to five percent in additional loan proceeds and free energy and water audit reports to finance green improvements. Ringwald said Generations Senior Living is installing a solar and battery pack system as part of the Green Rewards program to yield future utility savings at the property.
Built in 2009, Paradise Village has seven four-story buildings with 394 units.
