Bethesda, Maryland – February 14, 2017
Walker & Dunlop, Inc. (NYSE: WD) (the “Company”) announced today that it structured six loans totaling $49,418,000 with Fannie Mae for Capital Growth Corporation (the “Sponsor”), who refinanced six garden-style, multifamily properties located in Utah and Tennessee. Each property in the portfolio is over 95 percent occupied, exceeding the average rate in its respective submarket.
The loans were structured with 15-year terms, 30-year amortizations, and roughly 1.25x debt service coverage ratios. Capital Growth Corporation was able to take advantage of Fannie Mae’s Early Rate Lock program, which enabled them to capitalize on attractive rate terms before interest rates began to rise significantly in early November. To ensure that the apartment complexes remain extremely competitive in the market, the Sponsor invested over $2.5 million in capital expenditures to the portfolio’s assets between 2013 and 2016. The updated properties continue to offer reasonable rents, which supports Fannie Mae’s mission of providing financing for affordable housing across the nation.
The properties in the portfolio include:Aspen Hills Salt Lake City, UT 162 units 14 buildings Braewood Apartments Murray, UT 76 units 5 buildings Fairbrook Apartments Salt Lake City, UT 44 units 4 buildings Hickory Forest Apartments Memphis, TN 230 units 26 buildings Linden Colonial Salt Lake City, UT 108 units 9 buildings Willow Glen Salt Lake City, UT 48 units 4 buildings
Walker & Dunlop’s Vice President, Brett McGuire, led the origination team and remarked, “It’s always a privilege to work with Garry and the Capital Growth Corporation team. We were able to leverage the scale of the portfolio to allow the borrower to lock in a very attractive, below-market interest rate. This product met all of the borrower’s goals which is always our main objective.”
Since 2013, the Company and Fannie Mae have executed over a dozen transactions with Capital Growth Corporation. On behalf of the Sponsor, Garry Gee commented, “Professionalism, ease of execution, and surpassing expectations define our experience with the Walker & Dunlop team. We could not be more pleased!”
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.