
Dealmaker: Walker & Dunlop Arranges $65M for Retail, Mixed-Use
Walker & Dunlop, Bethesda, Md., structured $61 million in financing to recapitalize The Shops at Dakota Crossing, a 140,000 square-foot Washington, D.C. retail center.
Led by Managing Director Jamie Butler, Walker & Dunlop’s Structured Finance team replaced the existing construction capital stack with a stretch senior bridge loan that also provided for future funding based on additional leasing and capital costs.
Despite its location on main travel route New York Avenue NE, the surrounding neighborhood had few retail options prior to The Shops at Dakota Crossing’s delivery. As a result, the final phase of development was 98 percent pre-leased with a mix of national and local tenants including the city’s first Costco, Lowe’s, Dick’s Sporting Goods, Marshalls, PetSmart and Chick-fil-A.
The development team was led by Trammell Crow Co., Dallas, with joint venture partners Fort Lincoln New Town Corp. and CSG Urban Partners. Butler noted the venture has worked on the project for more than 15 years.
Walker & Dunlop also structured a $4.8 million construction loan through HUD to convert the Krise Building in Lynchburg, Va. into a mixed-use property for multifamily housing and commercial use.
The historic seven-story building dates to 1905, at the time the city’s first skyscraper. It remains as an excellent example of early 20th century skyscraper design.
Walker & Dunlop’s team, led by Vice President Rob Rotach, secured a 40-year fixed-rate fully amortizing loan for borrower Krise Partners, LLC. The debt placement team secured a construction loan through HUD’s Section 221(d)(4) loan program, which insures mortgage loans that facilitate the new construction or substantial rehabilitation of multifamily rental or cooperative housing for moderate-income families.
Additionally, the property was financed in conjunction with the approval of a 20 percent Historic Tax Credit for “qualified rehabilitation expenditures” through the Virginia Department of Historic Resources.
“The Krise Building is historically known as one of Lynchburg’s most beloved artifacts, and the revitalization of the building will facilitate the preservation of the city’s architectural heritage while refueling economic activity,” Rotach said.
Once complete, the Krise Building property will contain 21 units with a total net rentable area of 25,766 square feet.