Bethesda, Maryland – August 16, 2016
Walker & Dunlop, Inc. (NYSE: WD) announced today it structured three loans totaling $48,750,000 utilizing Freddie Mac financing. The Lodges at Glenwood, Raintree Commons, and Cambridge Court are off-campus dedicated student housing facilities in Provo, Utah.
Each loan is structured with a 10-year term and five years interest only, followed by a 30-year amortization schedule. Based out of the Birmingham, Alabama office, Will Baker, senior vice-president and managing director, led the Walker & Dunlop team. Mr. Baker commented, “This deal was unique, as Freddie Mac visited the sites in order to meet the borrower and observe specific details and intricacies about each property. As a result of the visits, Freddie Mac became acclimated and comfortable with the properties and their assets, and thus approved of the financing structure.”
Guarantor, Dave Freeman has over 25 years of experience in all aspects of student housing ownership and management, as well as the Brigham Young University (BYU) market. Mr. Freeman commented, “I was very impressed with the proactive and decisive approach both Walker & Dunlop and Freddie Mac took in underwriting, approving, and closing these loans. We always knew where we stood, and we were never left hanging. The Walker & Dunlop team was very professional.”
Freddie Mac and Walker & Dunlop are very active in the student housing market across the country. These properties fit the product type very well, with good local sponsorship and strong asset quality. BYU requires off campus housing to be under contract with the university, which entails a supportive environment for its single, undergraduate students living off-campus. The properties offer student residents flexible rental options by offering both long-term leases in line with the academic year and Spring/Summer short-term leases. Historical vacancy rates at the properties have remained consistently low over the past 10 years.
These garden-style apartment properties are preferred off-campus housing of BYU students and located just minutes from campus. Additionally, the student housing facilities have excellent access to Route 89, Interstate 15, and prime Provo and Orem shopping. Common property amenities include private balconies/patios, furnished units, parking, pools with cabanas, clubhouses with TV lounges, on-site maintenance, laundry facilities, and BBQ areas.
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.