Bethesda, Maryland – November 18, 2016
Walker & Dunlop, Inc. (NYSE: WD) announced today it structured a $35,752,600 refinance loan for Windrose Apartments & Bungalows, a property encompassing nearly three-quarters of a block in Pasadena, California.
This project utilized U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) 223(f) program to refinance the existing loan and fund desired capital improvements. By implementing this program, the Walker & Dunlop team significantly lowered the borrower’s interest rate for a 35- year term while increasing the property’s cash flow, providing funds to enhance their asset and return equity to the sponsors. In addition to the long-term, low interest rates, the assumable loan structure provides re-sell value to the borrower in the event they decide to sell the asset in the future. The apartment’s long record of solid occupancy and well-maintained amenities, paired with the strength of the sponsor’s experience, allowed for a solid loan opportunity for both the borrower and HUD’s insured portfolio.
Senior Vice Presidents, Geoffrey Arrobio and Jeff Kearns, led the Walker & Dunlop team and assisted the borrower throughout the City of Pasadena’s intricate approval process. Mr. Arrobio commented, “I have known this client for over 25 years and have had the opportunity to finance several projects, however, this was the client’s first FHA/HUD execution. The borrower was extremely pleased with our process as we worked to limit uncertainties by working closely with their team and HUD to ensure a timely closing in advance of their CMBS maturity.”
The property’s 129,864 total square feet includes seven multifamily buildings, two office buildings, and nine professional bungalows. The residential buildings’ 134 units were 96 percent occupied at closing and offer subterranean parking, a pool, pool house, and gardens. The bungalows and office structures were 100 percent leased at closing by tenants consisting of money managers, attorneys, family counselors, and consultants. Minutes from downtown Los Angeles, Windrose Apartments & Bungalows is situated in a tree-lined neighborhood of single and multi-family housing developments. The property is adjacent to a private school and within walking distance from a Whole Foods Market, the Paseo retail center, and Pasadena’s Civic Center, Old Town, and Gold Line.
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.