Walker & Dunlop Originates $617 million of Student Housing Loans in 2015

Bethesda, Maryland – March 16, 2016

Walker & Dunlop, Inc. (NYSE: WD) (the “Company”) announced today that it originated $617 million in loans backed by student housing properties in 2015.

With a growing percentage of high school graduates choosing to pursue higher education, steady growth in college enrollment over the next several years is expected in the United States, which will drive the demand for student housing across the country. This expectation of increased demand combined with strong occupancy trends make student housing an attractive option for borrowers looking to deploy capital in the commercial real estate space. As a sub-sector of multifamily housing, student housing financing requires specialized knowledge of the evolving market trends facing owners and operators of these properties that cater to college-age residents with very specific demands.

Walker & Dunlop’s President, Howard W. Smith stated, “Walker & Dunlop has decades of experience financing student housing properties and in-depth knowledge of student housing markets throughout the country. This market is everchanging to meet the increasing demand for off-campus student housing and it’s vital that borrowers are aware of the current trends in this sector. Walker & Dunlop’s experienced originators understand the unique financing requirements and options available to borrowers in the student housing space, which allows our team to structure optimal financing to meet the needs of our borrowers.”

Recent student housing financings by Walker & Dunlop:

Collegetown Terrace - Ithaca, New York

• $55.9 million Fannie Mae loan for a student housing complex in close proximity to Cornell University
• The borrower was able to complete development of the property using a one-year bridge loan provided by Walker & Dunlop’s Interim Loan Program
• Walker & Dunlop subsequently arranged permanent financing for the property in the form of a ten-year, fixed rate Fannie Mae loan

Domain at Tempe - Tempe, Arizona

• $48.8 million Fannie Mae acquisition loan for a dedicated student housing property serving students at Arizona State University, the largest university in the United States
• Student housing occupancy in the Tempe, Arizona sub-market averaged 98.3% at the time the loan was underwritten, demonstrating the strong demand for student housing in this area

Tetro Student Village - San Antonio, Texas

• $24.0 million Freddie Mac acquisition loan for a student housing development located 0.5 miles from the University of Texas at San Antonio
• This newly-constructed property features amenities like a bocce ball court, dog park, coffee shop, sports bar, and arcade that make the community very attractive to students in the area

 

South Campus Apartments - Madison, Wisconsin

• $7.5 million, 6-year loan for a student housing apartment community located near the University of Wisconsin
• Walker & Dunlop used its access to a wide variety of capital sources to obtain the optimal financing terms for the borrower through life insurance company, PPM Financial, which also financed the student housing property that is adjacent to South Campus Apartments and owned by the same sponsor

More information on Walker & Dunlop’s experienced student housing finance professionals is available here, on the Company’s website,www.walkerdunlop.com.

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.