Dealmaker: Walker & Dunlop Structures $71M for Multifamily
Walker & Dunlop, Bethesda, Md., structured $44.8 million in financing for the Ambling Portfolio, a collection of eight multifamily properties throughout the southeastern U.S.
The Ambling Portfolio totals 741 units, all subject to land-use restrictive agreements requiring 40 percent of units be occupied by tenants earning 60 percent of the area median income or less. The properties are also supported by Housing Assistance Payment contracts with local housing authorities that stipulate contractual rents. Five of the properties are located in South Carolina, with two in North Carolina and one in Alabama.
Walker & Dunlop Managing Directors Jeff Lawrence and Greg Krafcik and Vice President Matt Baptiste arranged the financing on behalf of Infinity Real Estate Advisors and Infinity Capital Partners. The team worked with Managing Director Geoff Smith and Senior Director Kimberly Schmitz of Walker & Dunlop Commercial Property Funding LLC, the company’s specialty high-yield first mortgage and mezzanine lending platform.
Navigating the LURA and HAP contract considerations associated with the properties, the team structured financing at a 90 percent loan-to-cost ratio. Loan proceeds will complete $8.45 million in planned renovations in addition to covering acquisition costs.
“There is not enough product [nationwide] to support the growing need for affordable housing,” said IREA Chief Investment Officer Greg Jones. “Should our economy weaken, this demand will only continue to grow. We see affordable multifamily as a unique investment product offering predictable returns in the event of an economic downturn.”
Walker & Dunlop also provided $26 million in acquisition financing for The Reserve at Johns Creek Walk, a Class A multifamily property in Atlanta’s Johns Creek suburb. JLL Income Property Trust acquired the 210-unit garden-style community.
Led by Executive Vice President and Managing Director Jim Cope and Vice President Benjy Krosin, the Walker & Dunlop team underwrote the loan to real estate investment trust standards and secured financing with the flexibility the trust required. Fannie Mae, Washington, D.C., provided ten-year financing with five years of interest-only payments