Bethesda, Maryland – March 2, 2016
Walker & Dunlop, Inc. (NYSE: WD) announced today it structured a $8,000,000 loan for M3 Multifamily (“M3”) based in Santa Barbara, California, with CUNA Mutual Group (“CUNA”) to refinance the Links at Forest Creek (the “Links”), a 220-unit garden-style apartment community in Round Rock, Texas.
The refinance was structured as a 15-year assumable loan with a Wisconsin based life insurance company at a fixed rate of 4.18 percent. Tom Toland, senior vice president, Brandon Strong, vice president, and Jeff Schmidt, assistant vice president, led the Walker & Dunlop team. Mr. Toland stated, “M3 has been a great Freddie/Fannie client over the years, but this deal was a challenging fit for the GSEs and most lenders because of the fractional ownership structure at the property. Fortunately, Walker & Dunlop has an extensive network of life insurance company relationships and we were able to quickly identify CUNA as a great fit for the debt on this deal. ”
Located 22 miles northeast of Austin, Texas, the Links was originally developed as an investor-owned planned rental community with 55 4-plex buildings containing 220 total units. Following construction in 2010, the original developer of the property had sold 15 of the 55 buildings to 15 separate investors before M3 acquired the remaining 40 buildings (160 units) in bulk in 2012 giving the California based investor overall control of the property. Even though M3 controlled the homeowners association and managed the property, the fractional ownership nature of the Links was a challenging fit for most traditional lending programs.
Managing Partner and Vice President/CFO of M3 Property Management, Inc., Jon Martin, stated, “This was a tough deal, but Tom, Brandon, and the Walker & Dunlop team did a great job and it was a surprisingly clean process. It was also a pleasure dealing with the CUNA folks and we look forward to working with both Walker & Dunlop and CUNA in the future.”
Links at Forest Creek offers residents two, two-bedroom/two-bath floor plans, a private balcony or patio, and optional covered parking. In addition, the apartment complex has a wireless community clubhouse, controlled access gates, monthly planned activities, resort style pool, and cardio fitness center. At the time of closing, the property was 98 percent occupied.
About Walker & Dunlop
Walker & Dunlop (NYSE: WD), headquartered in Bethesda, Maryland, is one of the largest commercial real estate services and finance companies in the United States providing financing and investment sales to owners of multifamily and commercial properties. Walker & Dunlop, which is included in the S&P SmallCap 600 Index, has over 600 professionals in 28 offices across the nation with an unyielding commitment to client satisfaction.