Bethesda, Maryland – August 24, 2016
Walker & Dunlop, Inc. (NYSE: WD) (the “Company”) announced today that Walker & Dunlop Commercial Property Funding (“WDCPF”), the Company’s proprietary conduit and high-yield direct lending platform, structured and closed a $10,000,000 mezzanine loan on the Marriott Courtyard Philadelphia South at the Navy Yard in Philadelphia, Pennsylvania.
The mezzanine loan was structured with 33 months of full-term interest-only, to coincide with the maturity date of the existing senior mortgages. The loan proceeds will be used to finance the construction of 40 additional units, as well as to provide a cash return to the sponsor upon completion. The loan represents 100 percent of the cost of expansion and a loan to value of 75 percent. Geoff Smith, managing director and head of originations for WDCPF, led the Walker & Dunlop team and added, “We are very pleased to have been able to navigate through the complexity of the existing mortgages and structure subordinate financing in a way that allows the property to be expanded and achieve its potential.”
The Navy Yard district is within Philadelphia’s Keystone Opportunity Improvement Zone, which enjoys significant real estate, city, and state business tax benefits. The Navy Yard is a 1,200-acre business campus for over 152 companies, including office, industrial/manufacturing, and research and development space. Upon completion of the urban development, the Navy Yard will span 13.5 million square-feet and support 30,000 individuals. Located only three miles from the Philadelphia Center City district, the hotel is within walking distance from the Philadelphia Sports Complex, home to the Eagles, Phillies, 76ers, and Flyers.
Built in 2013 as the first and only hotel in the historic Navy Yard, the Courtyard Philadelphia South features a five-story building and will consist of 212 rooms once finished. The hotel boasts the U.S. Green Building Council’s “Leadership in Energy and Environmental Design” certification and features sustainable accommodations, including a state-of-the-art bistro and bar, a 24-hour fitness center, and 2,000 square-feet of versatile meeting space. The Courtyard offers a sophisticated experience in this new urban hub.
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.