Walker & Dunlop’s High-Yield Lending Platform Closes $86 Million Bridge Loan for Multifamily Portfolio
Aug. 15, 2017
Bethesda, Maryland – August 15, 2017
Walker & Dunlop, Inc. (NYSE: WD) (the “Company”) announced today that it structured $86,000,000 in financing for a five-asset, 1,208-unit multifamily portfolio located in Kissimmee and Oakland Park, Florida as well as Abilene and Amarillo, Texas for its owners, Pilgrim V and GRA Equities. The transaction was closed by Walker & Dunlop Commercial Property Funding, LLC (“WDCPF”), the New York City-based, wholly-owned high-yield first mortgage and mezzanine lending platform of Walker & Dunlop, Inc., which provides funding on investments collateralized by multifamily, commercial, hospitality, and healthcare-related real estate assets. The program capitalizes both stabilized and transitional assets across all property types in the United States.
Gary Romaniello, Principal of GRA Equities expanded, “The WDCPF loan provides the capital that’s necessary to reposition the properties and subsequently provide a bridge between renovation and stabilization that will allow cash flows to season in preparation for a longer term take out loan.” The financing solution provides the ownership group with flexible repayment terms as the properties re-stabilize and become available for sale or refinance. Both Atlas Residential and GRA Equities are approved United States Department of Housing and Urban Development (HUD)/FHA borrower and management sponsors, making them ideal candidates to refinance through the HUD 223(f) lending program with the Company’s FHA group.
Atlas Residential, which manages the properties for the new owners, is led by Steven Ivankovich and has acquired, developed, and managed over 85,000 multifamily units over the past several decades in the U.S. and UK. They remain committed to providing affordable workforce housing across their portfolios throughout the U.S.
Geoff Smith, Kimberly Riordan, and Randy Efron led the Walker & Dunlop team, which financed a three-year, interest only, floating-rate mortgage with 84 percent loan to cost. The transaction allowed the borrowers to recapitalize the equity, clear up deferred maintenance, and renovate units. Over the last several years, the portfolio has suffered from a previous partner’s insolvency that indirectly caused the properties to lose their competitiveness within their respective markets as a result of being undercapitalized. Mr. Smith stated, “we are excited to provide support to Gary as they re-stabilize these workforce housing assets for the next 20 years.”
This five-property multifamily portfolio is just one example of Walker & Dunlop’s dedication to providing much-needed affordable housing options to renters throughout the U.S. The Company’s originations within the affordable asset class is growing rapidly; in the first half of 2017 Walker & Dunlop has originated over $1 billion in transactions on affordable properties, almost double the amount of its 2016 full-year affordable loan volume of $622 million. For more information on the Company’s offerings, please browse our full suite of capabilities.
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.
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