Walker & Dunlop, Inc. announced today that it structured $40,625,000 in financing across four loans for Keahumoa Place Apartments, a new garden-style affordable housing community to be built in Ewa Beach, Hawaii. Located just 20 miles west of Honolulu, the project will be built on previously vacant, state-owned land and will provide much-needed housing at affordable rents in one of the nation’s most expensive housing markets.
Led by Kyle Peterson and Michael Liefer, Walker & Dunlop structured the financing through Freddie Mac’s Tax-Exempt Loan (TEL) and Unfunded Forward Commitment programs, allowing the client to lock in attractive interest rates through the entire term of each 16-year loan. The master-planned community is being developed by The Michaels Organization, a repeat client of Walker & Dunlop, and the largest owner and operator of affordable housing in the country. It will utilize a combination of 4% and 9% Low-Income Housing Tax Credits (LIHTC) and remain affordable for 65 years. Peterson and Liefer worked closely with the client, the Hawaii Housing Finance & Development Corporation (HHFDC), and Hawaii’s Attorney General to complete the complex, multi-phased transaction.
“Michaels is grateful for the opportunity to work once again with the professionals at Walker & Dunlop, who – along with Freddie Mac – structured the permanent financing for this much-needed affordable housing development,” said Kelly DeJoy, Vice President of Real Estate Finance at The Michaels Organization. “With their support, we are able to provide quality housing and deliver on our commitment to lift the lives of families in this community."
Peterson commented, “It was truly an honor to work on this unique assignment on behalf of The Michaels Organization. Thanks to the knowledge, skill, and expertise of our teams, we were well-positioned to navigate the intricacies associated with each phase of Keahumoa.” Liefer added, “This community will provide high-quality living for working families in one of the country’s most expensive housing markets where demand for affordable housing far exceeds supply.”
The property is ideally situated along Keahumoa Parkway, a short distance from the Kualakai Transit Station, the University of Hawaii’s West Oahu campus, and across the street from a Kroc Center and a new middle school. Once construction is complete in 2021, Keahumoa Place Apartments will consist of 320 one-, two-, and three-bedroom units in 37 two-story buildings across 20 acres of land. The development will feature beautiful garden space, a picnic area, pet park, and community center complete with a multi-purpose room and computer lab. Innovative solar panels with efficient energy storing and sharing technology will also be installed atop carports to reduce the project’s carbon footprint as well as lower utility costs for residents.
Walker & Dunlop is one of the largest multifamily lenders in the country and is ranked within the top five non-bank affordable lenders in the United States, according to the Mortgage Bankers Association’s 2018 Commercial/Multifamily Origination Rankings. In 2018 alone, Walker & Dunlop closed over $1 billion in transaction volume for affordable properties. Learn more about Walker & Dunlop’s footprint in the affordable housing market here:
About Walker & Dunlop
Walker & Dunlop (NYSE: WD), headquartered in Bethesda, Maryland, is one of the largest commercial real estate finance companies in the United States. The company provides a comprehensive range of capital solutions for all commercial real estate asset classes, as well as investment sales brokerage services to owners of multifamily properties. Walker & Dunlop is included on the S&P SmallCap 600 Index and was ranked as one of FORTUNE Magazine’s Fastest Growing Companies in 2014, 2017, and 2018. Walker & Dunlop’s 700+ professionals in 29 offices across the nation have an unyielding commitment to client satisfaction.