Bethesda, Maryland – February 2, 2017
Walker & Dunlop, Inc. (NYSE: WD) announced today that it structured two loans totaling $49,000,000 for Avesta Communities (“Avesta”) during the fourth quarter of 2016. The proceeds were used to acquire Arbors at Carrollwood and to refinance Avesta Costa Del Lago, both multifamily properties located in Florida.
Built in 1999, Arbors at Carrollwood is a Class A, 96 percent occupied, bulk condominium complex in Tampa, Florida. In a partnership with New York-based GRJ, Avesta acquired 223 of the property’s 390 total units, representing 57 percent ownership. In addition to implementing a multimillion-dollar capital improvement program that includes interior renovations and upgraded common areas, the borrower plans to increase ownership by purchasing additional units at the property. Walker & Dunlop arranged the $29,000,000 nonrecourse acquisition loan with a 7-year term and future funding for the acquisition of additional units.
Avesta Costa Del Lago, constructed in 1972, is a Class B, garden-style apartment complex located in Lake Worth, Florida. Walker & Dunlop originated the $20,000,000 Fannie Mae Structured Adjustable Rate Mortgage to refinance the property. The 10-year, non-recourse loan, which included 5 years of interest-only payments and a 30-year amortization schedule, provided cash out to the borrower. Since acquiring the property in 2013, Avesta has significantly increased the property’s net operating income through $1 million in renovations and operational improvements. The 177,481 square foot community features a clubhouse, swimming pool, picnic area with grills, lakefront units, playground, and pet play area, as well as on-site laundry facilities, maintenance, and management.
Walker & Dunlop’s Vice Presidents Alison Williams and Matt Baldwin led the origination team’s executions. Mr. Baldwin remarked, “There are a limited number of lenders who are comfortable with bulk condominium purchases, but given Avesta’s planned capital improvements and buy-back schedule, we were able to secure favorable loan terms. Avesta has a proven business model, as is evident by the value they have created at Costa del Lago since acquiring the asset in 2013.”
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.