Bethesda, Maryland – April 22, 2016
Walker & Dunlop, Inc. (NYSE: WD) announced today it closed a $53,358,442 loan for three Class-C office buildings in Tenleytown, a historic neighborhood in Northwest, Washington, DC.
This transaction was unique due to the complex financing Walker & Dunlop provided and the distinct conversion of two office buildings into Class-A multifamily properties, with the third building continuing to function as an office property. Known for its strong single family residential market, Tenleytown has limited multifamily properties, and developers have recently been identifying office sites for conversions into residential units. As DC’s population continues to grow at a rate of 1,100 new residents per month (U.S. Census Bureau), property owners are swiftly becoming aware of the changing highest-and-best-use of their properties. The borrower, Urban Investment Partners, is one of the first firms to acquire a property and embark upon this strategy in the Tenleytown submarket.
Located in Bethesda, Maryland, Dan Martin, senior vice president, and Chris Hew, vice president, led the Walker & Dunlop team that structured the deal. Mr. Hew commented, “The Tenleytown project was an exciting opportunity to provide liquidity for a truly neighborhood-changing project. Walker & Dunlop’s vast network in the real estate capital markets allowed us to find the perfect execution for our client’s needs.”
Financing procured by Walker & Dunlop included $24,962,542 and $18,645,900 floating rate construction loans, with 4- year terms, for the two office-to-multifamily conversion projects. A second lender was engaged for the operating office building which secured a max-leverage $9,750,000 floating rate permanent loan. The permanent loan was designed to be coterminous with the two construction loans.
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.