Bethesda, Maryland – August 11, 2017
Walker & Dunlop, Inc. (NYSE: WD) announced today that it closed an approximate $59 million combination of bridge and equity financing for Newmarket Business Park, a 471,486 square foot, Class B, multi-tenant office property in Marietta, Georgia. Walker & Dunlop’s Irvine, California-based team, led by Mark Strauss and Rob Quarton, represented the sponsors, Praelium Commercial Real Estate and South Street Partners, in acquiring the asset.
The debt was placed by a debt fund and arranged as a floating rate bridge loan with full-term interest only payments. A hedge fund invested the equity. The transaction highlights the availability of attractive bridge financing in today’s market.
“The property received a tremendous response from the capital markets as the lenders recognized the downside risk in the transaction was mitigated by the significant portion of the rent attributed to Home Depot,” commented Mr. Strauss. “The bidding was very competitive at leverage points between 80 and 85 percent of cost, with final non-recourse pricing close to 400 over LIBOR.”
Mr. Quarton added, “The equity investor was attracted to the opportunity because of the potential to either create excellent cashflow during the ownership period and or provide cap rate compression benefits due to the credit quality of the lease on a potential future sale.”
Located three quarters of a mile from I-75, Atlanta’s primary northwest/southeast artery, Newmarket Business Park consists of four single-story and two two-story office buildings constructed between 1983 and 1985. The asset was 85 percent leased at closing. A number of large corporate headquarters operations are within five miles of the asset, including Home Depot, Genuine Parks, Printpack, HD Supply, and Race Trac Petroleum. The new Atlanta Braves Stadium, 2.5 miles to the south, is bringing many contemporary developments and amenities to the area.
Walker & Dunlop’s expansive platform and broad spectrum of financial offerings allows for each deal to be structured with the best possible financing. For more information on how the Company can help fund your vision, visit this page.
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.