Dealmaker: Walker & Dunlop Closes $2.4B Credit Facility

Walker & Dunlop, Bethesda, Md., closed the largest transaction in company history, a $2.4 billion Fannie Mae Credit Facility that refinanced 67 Washington, D.C.-area multifamily properties.

The portfolio financed totaled 22,439 units, more than 60 percent of which qualified as mission-driven affordable housing under Federal Housing Finance Agency guidelines.

Victoria Station Apartments

Walker & Dunlop Multifamily Finance Senior Managing Director Brendan Coleman and team members Chris Forte, Connor Locke, Colin Coleman, Adam Johnston and Skye Stansbury structured the financing to give borrower Southern Management Corp., Vienna, Va., maximum flexibility by staggering maturities across a mix of fixed- and floating-rate, full-term interest-only financing.

Walker & Dunlop also brokered sale of six Dallas-area multifamily communities. Located in northern suburb Denton, the portfolio included Locust 210 Lofts, Victoria Heights, Victoria Station, Victoria Village, The Adagio and Locust Street Terrace Apartments.

Managing Director Kyle Palmer led Walker & Dunlop’s Investment Sales team that advised both seller and buyer. All parties were local, private-equity investors.

Following the sale, Palmer and Walker & Dunlop Senior Director Jeremy Nussbaum sourced a bridge loan from a national debt fund for the new owner. Loan terms included a 4.14 percent interest rate, interest-only payments for three years and an 80 percent loan-to-value ratio.

Each Class A mid-rise property was built between 2009 and 2014 and all properties averaged 94 percent occupancy at closing.