Dealmaker: Walker & Dunlop Arranges $130M for Former VA Hospital Redevelopment

(Image courtesy of GM Development via Walker & Dunlop)

Walker & Dunlop, Bethesda, Md., announced it has arranged $130 million in financing for the redevelopment of a former Veterans Affairs hospital campus in Denver.

Chris Rumul, Jason Silva, Cole Parker and Mike Valucci of Walker & Dunlop FHA Finance arranged the transaction on behalf of their client, GM Development. The project incorporates historic tax credits as a key component of the capital stack, enabling the adaptive reuse of the long-vacant property.

The financing, executed through the U.S. Department of Housing and Urban Development (HUD) 221(d)(4) loan program, represents the largest 221(d)(4) construction loan in the company’s history, the release stated.

“Executing the largest HUD 221(d)(4) loan in Walker & Dunlop’s history is a significant milestone for our platform,” said Ken Buchanan, EVP and head of FHA Finance at Walker & Dunlop. “We’re proud to partner with GM Development, the city of Denver and HUD to transform this historic asset, leveraging the program and historic tax credits to deliver high-quality housing while preserving an important piece of Denver’s history.”

The 8.22-acre former VA hospital campus will be redeveloped into a Class A mixed-use community. It will feature 493 rental units, including 8% designated as income-restricted at 60% AMI, along with 50,000 square feet of retail and medical office space.