Bethesda, Maryland – September 14, 2017
Walker & Dunlop, Inc. (NYSE: WD) (the “Company”) announced today that it arranged a $26 million combination of bridge loan and joint venture equity financing for the acquisition of Ridgeline Apartments, a 160-unit, Class B apartment complex in San Bernardino, California. The Company’s Irvine-based Capital Markets team provided this comprehensive capital stack solution on behalf of repeat borrower, Crystal Asset Management.
The Walker & Dunlop team of Gregory Richardson, Mark Strauss, Scott Watson, and Rob Quarton executed the deal within a tight timeline, strategically exposing the opportunity to the capital markets to obtain the best terms and structure available. The financing solution included $7,688,000 of joint venture equity with a California-based private investor and a three-year, interest-only bridge loan for $18,525,000 with a regional bank.
Sol Rabin, Principal of Crystal Asset Management, remarked “This was a smooth transaction from start to finish for both the joint venture financing and the debt. I’ve never experienced customer service that rivals Walker & Dunlop’s.”
Mr. Quarton commented, “There is currently a void in the market for joint venture equity in the $5 to $10 million range for strong sponsors. Our team was able to satisfy a need in this niche by using our extensive network to find an ideal partner on both economic terms and cultural viewpoint. This aligns with our mission to find the best joint venture partners and lenders available for commercial real estate entrepreneurs. Our clients are consumed with acquiring new deals or managing their current investments. We alleviate the burden of finding new capital relationships, which frees up their time to do what they love: running the core elements of their business.”
Mr. Strauss added, “We listen to our clients’ needs and design capital stacks that align with their requirements and the market’s current availability. Our ability to communicate the transaction’s strengths to the capital markets and attract multiple lending sources typically results in lowering the cost of capital, providing more favorable terms and thereby increasing profitability to our clients.”
“It is always rewarding to source the complete capital stack for a long-term client. In this case, we identified a like-minded capital partner and a lender who provided a debt structure that will be accretive to the business plan,” added Mr. Richardson.
Ridgeline Apartments consists of 10 two-story, walk-up residential buildings with one- and two-bedroom units. Located in one of Southern California’s healthiest economies with low unemployment and numerous educational and medical institutions, the asset is over 98 percent occupied. Furthermore, it is situated just a half a mile south on University Parkway from the California State University San Bernardino campus, which has over 21,000 students enrolled. Tenants will have direct access to a brand-new Starbucks Reserve, located across the street from a neighborhood center anchored by Ralphs and LA Fitness.Ranking as the 6th largest multifamily lender in Mortgage Bankers Association’s mid-year 2017 report, Walker & Dunlop continues to grow its multifamily portfolio across the country. In California, the Company increased its total origination volume by 25 percent year over year*. Ridgeline Apartments highlights Walker & Dunlop’s ability to creatively execute multifamily deals by combining its full suite of capital sources and experts to meet and exceed each client’s financing needs. Visit our website to learn more about the Company’s financial offerings.
*Multifamily Origination Mid-Year 2016 compared to Mid-Year 2017
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.