Bethesda, Maryland – February 2, 2017
Walker & Dunlop, Inc. (NYSE: WD) (the “Company”) announced today that it structured a $11,100,000 loan for Harriman Gardens, a rental community in Harriman, Tennessee. The acquisition transaction was arranged using the Department of Housing and Urban Development’s (HUD) Section 221(d)(4) mortgage insurance program, allowing for substantial rehabilitation to the property in conjunction with an allocation of short term tax exempt bonds and 4 percent low income housing tax credits.
Walker & Dunlop Vice President, Rob Rotach, led the origination team, which structured the 40-year, fully amortizing, fixed rate loan with a 1.22x debt service coverage ratio for the borrower, Harriman Gardens II, L.P. Mr. Rotach commented, “Following recent streamlining of HUD processes, the agency’s expedited review timelines allowed its Atlanta branch to process the loan application within 45 days and the Company was able to close the loan just 181 days after application. We are pleased to present the borrower with not only quick, but creative and functional financing.”
Harriman Gardens II, L.P. plans to preserve the property as an affordable rental housing complex and plans to make $6.8 million of tenant-in-place rehabilitation improvements to the property. Renovations will include the conversion of seven units to meet full Americans with Disabilities Act and United States Access Board accessibility standards, as well as several green efficiency upgrades to include Energy Star-rated lighting, appliances and plumbing fixtures and upgraded insulation. External improvements include updates to the development’s monument sign, sidewalks, pavement, and accessible parking ramps.
Located on 3.1 acres, Harriman Gardens was constructed in 1977 and consists of 136 units located in two three- and four-story low-rise buildings. The complex features several community rooms such as a gathering area, kitchen, and exercise room. The occupancy at closing was 97 percent, and unit options include one-, and two-bedroom units.
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.