Enclave Heritage Flats | Case Study

The Situation

The Baldwin Company sought long-term financing for Enclave Heritage Flats, a 312-unit multifamily community in Chula Vista, California. Located within the rapidly growing Otay Ranch Village II area, the property benefits from strong resident demand, a robust amenity package, and continued residential and commercial growth throughout the greater San Diego market.

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Having previously secured bridge financing for the asset in 2024, The Baldwin Company needed a permanent financing solution that would maximize proceeds, provide long-term stability, and support its long-term hold strategy. At the same time, the capital markets environment remained challenging, prompting borrowers to prioritize financing structures that offered certainty, attractive leverage, and protection from interest rate volatility.

The Solution

Walker & Dunlop's Capital Markets Real Estate Finance and Affordable Housing teams collaborated to structure a $101.6 million HUD-insured refinance through the U.S. Department of Housing and Urban Development's Section 223(f) program on behalf of The Baldwin Company.

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The financing refinanced existing debt previously arranged by Walker & Dunlop and converted the property's capital structure into long-term, fixed-rate financing. The HUD execution was selected because it aligned with the client's objectives of maximizing loan proceeds while securing stable, government-backed financing for a long-term ownership strategy.

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The transaction built on Walker & Dunlop's prior work at the property, including an $81 million bridge-to-HUD loan arranged in 2024. Leveraging deep FHA/HUD expertise and the evolving efficiency of the HUD approval process, the Walker & Dunlop team guided the transaction from structuring through closing, delivering a financing solution tailored to both the asset and ownership's objectives.

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The Result

Walker & Dunlop successfully arranged a $101.6 million HUD Section 223(f) loan, providing The Baldwin Company with long-term, fixed-rate financing for Enclave Heritage Flats.

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The refinancing enhanced capital certainty for a high-performing multifamily asset in one of Southern California's fastest-growing submarkets. By utilizing HUD financing, The Baldwin Company was able to secure attractive leverage and long-duration debt while supporting its long-term ownership strategy.

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The transaction also demonstrates the growing appeal of HUD financing for institutional-quality multifamily properties. As HUD approval timelines continue to improve, borrowers increasingly view the Section 223(f) program as a compelling option for securing stable, long-term capital in a changing market environment.

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