Bethesda, Maryland – March 7, 2017
Walker & Dunlop, Inc. (NYSE: WD) announced today that it structured a $35,827,000 Freddie Mac Immediate Delivery Tax Exempt Loan (TEL) for sponsor Smith & Henzy Advisory Group. The loan was used to acquire and rehabilitate Lake Delray Apartments, a Class B, affordable rental community in Delray Beach, Florida.
The loan was originally structured as a U.S. Department of Housing and Urban Development (HUD) 221(d)(4) cash collateralized short term tax exempt bond execution which was later converted to the Freddie Mac TEL Program when more flexible terms were required. Frank Baldasare, senior vice president at Walker & Dunlop, led the origination team, which arranged the 17-year acquisition loan that provided for two years of interest-only payments followed by a 35-year amortization schedule. The tax-exempt loan was issued by the Palm Beach Housing Finance Authority and the Delray Beach Housing Authority was the General Partner to preserve the real estate tax abatement. The Delray Beach Housing Authority, through the Delray Housing Group, Inc., manages the property and provided the project based vouchers housing assistance payments contact for 193 of the units. Remaining units are restricted to 60 percent area median income Low-Income Housing Tax Credit rental rates.
Darren Smith, principal at Smith & Henzy commented, “Over the past 12 months, Smith & Henzy has closed three deals with Walker & Dunlop utilizing Freddie Mac’s TEL Program. In the case of Lake Delray Apartments, Walker & Dunlop’s broad product platform and knowledge allowed us the flexibility to change debt executions on the fly from a HUD to a Freddie loan. Smith & Henzy values its relationship with Walker & Dunlop and we look forward to closing more deals with them in the future.”
Mr. Baldasare remarked, “We are pleased that Smith & Henzy has again chosen to work with Walker & Dunlop on a Freddie Mac TEL Immediate Delivery. Their vast expertise with complex affordable housing transactions will successfully provide much-needed quality and affordable elderly housing to the Delray Beach community.”
Lake Delray Apartments is a 404-unit rental community limited to citizens aged 62 and above. The project will receive $14.3 million in total renovations to upgrade the residential apartments and improve the living conditions of current and future residents. These will include 100 percent replacement of unit kitchens, baths, windows, flooring, and mechanical systems. Enhancements will also be made to property amenities, including the addition of a 1,200 square-foot gym, yoga room, library with computer rooms, barbeque area, outdoor LED lighting, as well as renovations to the clubhouse and to the two existing pools. The charming lakeside property is located on 14 acres in a residential neighborhood within the West Palm Beach and Boca Raton, Florida area, and it is near several senior services centers and a medical center.
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.